Osram Licht AG (OSRD)

[Enterprising Investor]

Osram Says SLS Restructuring in North America to Affect 900 Jobs (9/30/13)

Osram Licht AG (OSR), a former unit of Siemens AG (SIE), said a restructuring of its traditional lighting maintenance business Sylvania Lighting Services in North America will affect about 900 jobs.
The company will discontinue a “significant part” of its locations in the U.S. and Canada in the next six months as it focuses on energy-efficient solutions, the Munich-based company said in an e-mailed statement today.

“Our focus is on profitable growth and therefore we are consequently implementing the company’s transformation agenda,” Chief Executive Officer Wolfgang Dehen said in the statement.

Siemens, Europe’s biggest engineering company, separated from Osram in July as part of an effort to sell businesses with low profitability or growth prospects.
Osram has about 39,000 employees globally and generated revenue of 5.4 billion euros ($7.3 billion) in the 2012 fiscal year. More than 70 percent of its revenue comes from energy-efficient products, according to today’s statement.

Chief Financial Officer Klaus Patzak said in July that the lighting producer needs to restructure before considering additional acquisitions. Osram plans to shut or sell six plants for a total of 11 divested by the end of 2014 as it targets 1 billion euros in savings by 2015.

To contact the reporter on this story: Julie Cruz in Frankfurt at [e-mail]