Austria's ams OSRAM expects lower Q4 revenue, weak 2025 start
Expects Q4 revenue below expectations
Expects weak Q1 in 2025
Posts a Q3 revenue miss
Cuts more than 500 non-production jobs
Adds cost saving program in paragraphs 7-8
By Ozan Ergenay and Nathan Vifflin
Nov 7 (Reuters) -Austrian semiconductor manufacturer ams OSRAM AMS.S on Thursday forecast lower revenue in the fourth quarter due to uncertainty in the global automotive demand outlook and expects a weak first quarter in 2025 followed by a gradual recovery.
"The company expects the cyclical weakness in its automotive business to become fully visible in the first quarter, with gradual, steady improvement during the financial year of 2025," the Swiss-listed sensor maker said in a statement.
Ams OSRAM expects revenue in a range of 810 million to 910 million euros ($870.51-$977.98 million) for the fourth quarter, compared to 908 million euros in the same period a year earlier. Analysts were expecting sales of 924 million euros for the quarter, according to a poll by Vara Research.
"Given numerous profit warnings this reporting season due to weakening auto and industrial demand, the negative near-term message had to be expected," analyst Juergen Wagner at Stifel said in a note.
Automotive-focused companies such as ams ORSAM, STMicroelectronics STMPA.PA, and Aixtron AIXGn.DE, have been hit by weaker automotive sales, particularly electric vehicles which contain more chips per car.
Ams OSRAM posted revenue of 881 million euros for the third quarter, down 3% from a year earlier and below analysts' forecast of 875.7 million euros in a poll by Vara Research.
The company, which designs and produces optical sensors used in cars, medical devices and industrial applications, has tightened its cost cutting measures and slashed more jobs.
More than 500 non-production employees will be affected out of its 20,000 workforce. It expects to reap additional savings of 75 million euros, reaching 225 million by the end of 2026.
($1 = 0.9305 euros)
Reporting by Ozan Ergenay and Nathan Vifflin; Editing by Eileen Soreng and Shri Navaratnam
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