Oerlikon Posts Excellent Results In Current Quarter

0, 0

“We achieved another quarter of excellent performance, recording strong growth in orders, sales and operating profitability,” said Dr. Roland Fischer, CEO Oerlikon Group.

“Our surface solutions business advanced on its growth trajectory, increasing orders by 16 % and sales by 17 %. More notably, operating profitability after expenses from increased investments for the Segment came in at over 20 %. Our Manmade Fibers Segment recorded another quarter of strong results, substantially increasing both orders and sales and significantly improving EBITDA margin. With the signing of the definite agreement to divest the Drive Systems Segment, we have achieved another strategic milestone. We can now focus on growing our surface solutions and advanced materials businesses, while strengthening our Manmade Fibers Segment in its end markets. As a result of our exceptional first half-year performance, we have raised our outlook for the full year 2018,” he added.

Oerlikon Group second quarter review

The global economy continued to expand in the second quarter of 2018, driving positive purchasing and investment trends in all of Oerlikon’s end markets. Exploiting the opportunities presented by the positive market developments, Oerlikon succeeded in increasing orders and sales in almost all end markets, and improved operating profitability.

Also Read  Oerlikon To Present Sustainable Solutions For Road Safety At Techtextil

The Surface Solutions Segment carried its growth momentum forward into the second quarter, increasing orders and sales. A high level of demand was registered in the tooling and automotive markets, while strong uptake was seen in the aviation industry. The upward demand trend noted in the first quarter in general industries continued in the second quarter.

After accounting for increased operating expenses related to higher investments, particularly in the additive manufacturing (AM) business, the Segment achieved an EBITDA margin of over 20 %. The Manmade Fibers Segment once again significantly boosted orders and sales in the second quarter. The large uptick was attributed mainly to heightened investments for filament equipment and substantiated with very strong demand for texturing, carpet yarn and polymer processing equipment and systems.

Also Read  Oerlikon To Present Sustainable Solutions For Road Safety At Techtextil

In the second quarter, the Group’s order intake increased year-on-year by 26.8 % to CHF 677 million, while sales went up by 36.6 % to CHF 665 million. At constant exchange rates, sales stood at CHF 634 million. EBITDA for the second quarter increased to CHF 113 million, corresponding to a margin of 17.1 %. EBIT for Q2 2018 was at CHF 72 million, or 10.8 % of sales. The second quarter performance resulted in an improved rolling 12-month Oerlikon Group return on capital employed (ROCE) of 10.7 %.

Oerlikon Group half-year overview

In the first half of 2018, the Group’s order intake increased year-on-year by 35.4 % to CHF 1 434 million, while sales came in 38.5 % higher than the prior year, reaching CHF 1 269 million. With the top-line increase, the EBITDA for the half year amounted to CHF 208 million, corresponding to a margin of 16.4 %. EBIT stood at CHF 128 million, or 10.1 % of sales. Net income for the first half of the year increased significantly by 136.2 % year-on-year to CHF 111 million. In the first six months of 2018, Oerlikon’s service business contributed to 39.0 % of total Group sales.

Also Read  Oerlikon To Present Sustainable Solutions For Road Safety At Techtextil

 As of June 30, 2018, Oerlikon had equity (attributable to shareholders of the parent) of CHF 1 945 million, representing an equity ratio of 43 % (2017: 45 %). Net cash amounted to CHF 363 million (2017: CHF 499 million) and the cash flow from operating activities increased by 74.8 % for the first half of 2018 to CHF 194 million, compared to CHF 111 million in 2017.


Please enter your comment!
Please enter your name here