Osram has announced the financial results of fiscal 2018 and the fourth quarter of fiscal 2018 and addressed that it will focus on digitalization and high-growth markets.

The company’s revenue for fiscal 2018 has slightly increased with an on-year base and the operating profit reached EUR 605 million (US$ 692.69 million) with a margin of 15 percent.

Osram has acquired VCSEL specialist Vixar and horticultural lighting supplier Fluence Bioengineering to target the markets with high-growth potential and transform itself into a high-tech company. It has also announced plans to revise the business structure for its digitalization guideline including the automotive unit and digital unit.

The Automotive unit puts the focal point on automotive lighting. Its subsidiary, Advanced Smart LED Street Lighting (the joint venture established by Osram and Continental), produces custom-made lighting systems and aligns its offering within digitalization.

On the other hand, with a strong established customer base, the Digital unit of Osram aims to provide access for the future development of the business with intelligent digital lighting management systems, as well as cloud and IoT solutions.

Meanwhile, the sale of the luminaires business (Siteco) and negotiations for the sale of the U.S. service business (Sylvania Lighting Solutions) are progressing.

For the next fiscal year, Osram does not expect prosperity in business due to uncertainties in the automotive market and the existing and imminent trade barriers. However, the company has forecasted a stronger performance for the second half of fiscal 2019.