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First Quarter Results 2011

Oerlikon continues sustainable growth path

  • Oerlikon´s strong top-line performance delivered by stable markets, innovations and disciplined execution
    - Order intake grew 23 % to CHF 1 152 million (2010: CHF 937 million)
    - Sales rose 35 % to CHF 953 million (2010: CHF 705 million)
    - Order backlog totalled CHF 1 928 (2010: CHF 1 202 million)
    - Emerging markets, especially China and India drive growth
    Foreign exchange effects reduced sales by 11 % 
  •  Outlook: Oerlikon confirms targets for 2011


Key figures of Oerlikon Group as per 31 March 2011 (in CHF millions)

 

 

Q1 2011

 Q1 2010

 Change

 Order intake

 1 152

 937

 23 %

 Order backlog

 1 928

 1 202

 60 %

 Sales

 953

 705

 35 %

 

Pfäffikon SZ, 19 April 2011 - Oerlikon continued its sustainable growth path in the first quarter of 2011. Compared with last year the order intake posted a strong 23 percent increase, with all Segments delivering strong order growth. Sales rose a substantial 35 percent year-on-year, as five Segments contributed with double-digit sales growth. All regions delivered order and sales growth, primarily led by significant increases in Asia. Increased volumes and on-going enhancement of cost structures further improved profitability. As usual, Oerlikon will publish profit figures with the half-year results. Dr. Michael Buscher, CEO of Oerlikon Group, said: "Oerlikon's first quarter growth reflects the continuous performance improvement of our Segments through innovations and a disciplined execution of our 3 Year Business Plan. We are well on our way to reaching our 2011 targets and to achieving our sustainable Comeback." Oerlikon Group CFO Jürg Fedier said: "We are realizing benefits from our strong presence in emerging markets and our investments in new products and services. The resulting higher volumes are playing a vital role in driving our profitable growth."

All Segments deliver strong order growth

First-quarter order intake rose a strong 23 percent to CHF 1 152 million, compared to CHF 937 million in the same quarter a year ago. Order backlog reached CHF 1 928 million compared with CHF 1 202 million at the end of the first quarter 2010. All Segments contributed to this strong order growth, highlighted by higher volumes in Textile, Coating, Drive Systems and Advanced Technologies. All regions delivered the order growth, led by increases in Asia, up 35 percent, and North America, up 19 percent, with an 8 percent increase in Europe. "Other regions" grew by 23 percent.

All regions and innovations drive sales growth, despite currency impact

First-quarter sales grew year-on-year a substantial 35 percent to CHF 953 million, up from CHF 705 million in the first quarter in 2010 as five Segments delivered double-digit sales growth year-on-year. Growing at 58 percent, Oerlikon Textile saw the strongest sales growth, followed by Coating, up 33 percent, while Oerlikon Drive Systems continued it sales growth trend with a 20 percent rise year-on-year. Sales grew in all regions, led by Asia, up 54 percent, North America, up 25 percent, Europe, up 22 percent, with "other regions," rising 11 percent. Foreign exchange effects reduced first-quarter sales by 11 percent, or CHF 106 million.

Outlook for 2011

Oerlikon's first-quarter performance reflects a major step in reaching its targets for 2011. The Group is focussing on delivering strong growth in profitability in 2011 through continuous product innovation and further cost optimization. Based on Oerlikon´s first-quarter performance the company confirms its guidance: Following the peak in demand and order intake after the economic crisis, the Company expects a slight reduction in order intake as overall market demand normalizes. Oerlikon expects in 2011 a sales growth of up to 10 percent and further growth in profitability, based on stable foreign exchange rates. Therefore, in 2011 the Group expects profitability to reach performance levels nearing Oerlikon's operationally best years, principally delivered by Oerlikon Textile, Vacuum, Coating and Advanced Technologies. Oerlikon Drive Systems is expected to return to profitability, while Oerlikon Solar plans to break even in 2011. Oerlikon Textile and Coating expect markets to remain healthy and, as a result, forecast a solid sales increase in 2011. Assuming flat market demand, Oerlikon Vacuum and Advanced Technologies predict stable business for 2011. In the coming years, Oerlikon Group aims to exceed its best operational margins.

Segment overview

Oerlikon Textile: The Segment further strengthened its position as the world`s leading producer of textile machines. Its growth momentum continued in the first quarter. This was most evident in sales which rose 58 percent to CHF 458 million, compared to CHF 289 million in the first quarter of 2010. The Segment's overall growth was primarily driven by China, with India, Turkey and South America also contributing to growth. First-quarter order intake grew 20 percent to CHF 626 million year-over-year, from CHF 521 million in the prior-year quarter. At the end of the quarter, the Segment had a strong backlog, totaling CHF 1 394 million, compared to CHF 711 million at the end of the first quarter 2010.

Oerlikon Drive Systems: For the third quarter in a row, order and sales growth at the Segment increased, primarily driven by the continuing economic recovery in North America, business in Asia, strong growth in the construction, energy and agricultural markets and new product launches. First-quarter order intake rose 24 percent to CHF 228 million, compared to CHF 184 million in the first quarter of 2010. Order backlog at the end of the first quarter totaled CHF 156 million, compared to CHF 109 million at the end of the prior-year period. Sales rose 20 percent year-on-year to CHF 205 million.

Oerlikon Vacuum: With increases in all regions, first quarter order intake in 2011 grew 11 percent to CHF 120 million, compared to CHF 108 million in the same quarter a year ago. Orders came primarily from the solar and coating sectors as well as from the process industry. Asia, in particular China led the order increase, supported by Europe. Order backlog reached CHF 102 million at the end of the first quarter 2011, compared to CHF 85 million for the prior-year period. Sales rose 14 percent to CHF 102 million, up from CHF 90 million in the prior-year quarter.

Oerlikon Solar: First-quarter order intake rose year-on-year to CHF 26 million from CHF 8 million in the first quarter 2010, with order backlog amounting to CHF 235 million, down from CHF 267 million in the prior-year quarter as anticipated. Sales increased 18 percent to CHF 47 million from CHF 39 million year-on-year. The Segment's highly competitive new ThinFab production line continues to attract interest and initial orders are expected in the coming months.

Oerlikon Coating: Growth in the Segment continued to gain momentum in the first quarter of 2011, resulting from significant growth in the components business in Western Europe and strong growth in Asia. First-quarter sales saw a strong 33 percent increase to CHF 125 million, compared to the prior-year quarter.

Advanced Technologies: The Segment continued its growth due to continuing strong demand in the semiconductor and optical disc equipment market. First- quarter order intake rose to CHF 27 million, up 26 percent from a year-earlier CHF 22 million on the back of strong demand for power devices in the semiconductor sector and business in Asia. As expected, sales fell 30 percent to CHF 16 million due to lower orders at the end of 2010. Order backlog rose from CHF 30 million at the end of the first quarter 2010 to CHF 41 million at the end of the first quarter 2011.

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