Osram plans to split off its largest division of lamps and related components

　　German lighting manufacturer Osram recently stated that the company's 2014 growth target has become more challenging, and it plans to spin off the division that accounts for the largest share of the company in order to quickly transition to new technologies.

　　At an investor presentation held on Tuesday, Osram officials stated that the company plans to spin off its lamps and related components division. This business accounts for approximately half of the company's total sales. After the spin-off, the division will be divided into two: one focusing on traditional lamps, and the other on LED.

　　As the world's second-largest lamp manufacturer after Philips, Osram is undergoing deep structural adjustments, including the elimination of thousands of positions, striving to transition from traditional lamp operations to new technologies, such as LED.

With the demand for traditional lighting fixtures continuing to decrease, Osram's revenue from its lighting fixtures and related components business division has declined. The company stated on Tuesday that the first two months of the second quarter would show a continued decline. Nevertheless, as reported by OFweek Semiconductor Lighting Network, the company's group revenue for the most recent fiscal year still achieved growth, exceeding the global economic growth rate, and is expected to reach 3% in 2014. However, Osram pointed out at the meeting that the growth in the first half of this year would be limited.