Via Yahoo Finance

BERLIN (Reuters) – German lighting company Osram on Wednesday posted a hefty drop in second-quarter earnings, pointing to a downturn in the automotive industry and a broader economic slowdown.

The Munich-based group said its adjusted earnings before interest, tax, depreciation and amortization (EBITDA) dropped by 56 percent and revenues on a comparable basis fell by 13.5 percent, adding the market environment remained challenging.

“Especially the downturn in the automotive segment leads to high inventories in the Chinese market,” Chief Executive Olaf Berlien said.

“Together with a general downturn of the economy this is the reason we are facing a decline in sales for our second quarter.”

Shares in Osram were indicated up 3.4 percent in early Frankfurt trade.

In March Osram cut its forecast for the fiscal year 2019 and on Wednesday the company confirmed those predictions, saying it still expected a decline in revenue from continuing operations of 11 to 14 percent and an adjusted EBITDA margin of 8 to 10 percent for the 2019 financial year.

Osram said in February that Bain Capital and Carlyle Group were looking at whether to jointly bid for up to 100 percent of its shares.

Osram said on Wednesday that due diligence process was continuing and it remained to be seen whether an agreement would be reached.

(Reporting by Michelle Martin; Editing by Madeline Chambers)

READ ALSO  China's securities regulator pledges further capital market opening-up