By Adria Calatayud

Ams-Osram shares jumped after the company outlined a plan to consider options for assets that aims to generate more than 500 million euros ($569.3 million) in proceeds and accelerate its debt-reduction efforts.

Shares in Ams-Osram were up 14% in European morning trading at 7.78 Swiss francs, taking their year-to-date gain to 31%.

The European electronics company said it is considering strategic options for certain assets in addition to the planned sale of its Kulim facility in Malaysia. As part of the plan, the company also aims to improve its cash generation by executing on a cost-savings plan, it said.

The plan aims to bring the company's ratio of net debt to adjusted earnings before interest, taxes, depreciation and amortization to below 2 times in an accelerated manner as well as bringing down annual interest costs, Ams-Osram said. The plan was formulated in view of current economic uncertainties, the company said.

This would be good news for Ams-Osram if it can be delivered, Barclays analysts Simon Coles and Rohan Bahl said in a research note.

Ams-Osram disclosed the plan alongside first-quarter results that showed a sharply narrowed after-tax loss of 82 million euros compared with a loss of 710 million euros in the year-earlier period. Revenue fell 3% on year to 820 million euros.

Adjusted Ebitda rose 9% to 135 million euros, with a margin that expanded to 16.4% from 14.6%.

For the second quarter, the company expects revenue to range from 725 million to 825 million euros. Ams-Osram said it is mitigating most of the primary cost impact from new U.S. tariffs.

The company said a recovery in its markets is still possible in the second half, but that it remains subject to potential tariff impacts on car production, smartphone sales or the economy.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

April 30, 2025 04:30 ET (08:30 GMT)

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