April 24, 2018 / 4:24 PM / a year ago

Osram cuts profit guidance on weaker U.S. dollar, slow business

FRANKFURT, April 24 (Reuters) - German lighting group Osram stepped up cutbacks and slashed its guidance for adjusted core profit and earnings per share in fiscal 2018, citing a weak dollar and slower business development.

Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) in the 12 months to September would likely come in at 640 million euros ($782 million), down from a previous target of about 700 million.

It is now aiming for 1.90-2.10 euros in earnings per share, where it had previously seen 2.40-2.40 euros.

Osram had warned in February that a recent slide in the U.S. dollar was making its full-year guidance more ambitious after foreign exchange effects held back revenue growth in its fiscal first quarter.

Restructuring measures may lead to an extraordinary expense before tax of 60-70 million euros, Osram said, though it added it was not yet clear when the costs would be incurred as it cannot predict how long negotiations with the labour representatives will last. ($1 = 0.8182 euros) (Reporting by Ludwig Burger; editing by David Evans)

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