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Record profitability at Oerlikon Textile in 2011
05
Mar '12
The Oerlikon Group reported further substantial performance improvements in 2011, with sales increasing by 16 % to CHF 4.2 billion and Group profitability delivering a record EBIT margin of 10 %. These results reflect the company's extensive change process that led to record profitability in the Textile, Coating and Vacuum Segments.

Measures have been taken throughout the Group to improve Operational Excellence, focus on innovation and expand in growth markets. These actions have strengthened the company's underlying performance considerably and leave it well positioned for continued sustainable and profitable growth.

Dr Michael Buscher, CEO of Oerlikon Group, said: “These results demonstrate the success of our operational and strategic transformation.

The changes we have made to improve our performance and develop key markets are an intermediate step to becoming best-in-class in our businesses, and to generating sustainable profitable growth – a multi-year agenda, in which 2011 marked an important milestone. The announced divestment of our Solar Segment fully supports this agenda.”

Although Oerlikon faces challenges arising from economic uncertainty going forward, the company remains confident that the 2011 performance can be built upon in 2012. Oerlikon Group CFO Jürg Fedier comments: "Our financial position continues to strengthen. We further improved our credit profile by significantly reducing net debt in 2011 and we continued to generate strong operating cash flow.

To this end, the Board of Directors put in place a dividend policy with a payout of up to 40 % of net profit. We will recommend a dividend of CHF 0.20 per share distributed from the reserve from capital contribution for 2011 at the Annual Shareholder Meeting in April.”

Sales rose 16 % in 2011 to CHF 4.2 billion from CHF 3.6 billion in 2010. Stripping out currency effects, sales would have risen 30 % to CHF 4.7 billion. Sales grew across the Group and were particularly strong in Oerlikon Textile, which delivered a 23 % increase to CHF 2.0 billion.

As forecast, 2011 order intake was 11 % lower at CHF 4 billion after an exceptional 2010 (CHF 4.5 billion), a year in which customer orders were unusually high as they recovered from the crisis of 2008 and 2009. Order backlog was 13 % lower, at CHF 1.5 billion (2010: CHF 1.7 billion) for the same reason. The book-to-bill ratio was 0.97 (2010: 1.26), indicating established sales development. Adjusted for currency effects, order intake and backlog would have been flat year-on-year.

Geographically, the Group sharpened its focus on Asia to further leverage the considerable growth opportunities in the region. China is now Oerlikon's larges location worldwide and represents 40 % of Textile Segment sales. Overall sales in Asia grew to 49 % of the 2011 total, with China remaining the driving force. There were minor changes in the proportion of sales from North America andEurope, which account for 15 % and 28 % respectively. Other Regions accounted for 8 %.

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