Textile segment drives Oerlikon's profitability in Q2

Oerlikon CEO Michael Buscher said: “The systematic execution of our agenda with consistent focus on Operational Excellence, Innovation, market reach and portfolio optimization led to continued improvement in our profitability. The performance level we have achieved strengthens our position in an uncertain business environment”.

Based on the strong Q1 and Q2 performance, Oerlikon is increasing its outlook for FY 2012, now expecting sales to be at 2011 levels with an EBIT margin of around 11.5 % (excluding one-time effect of Arbon property sale). The reported EBIT margin is expected to reach around 12.5 %. Order intake guidance remains unchanged.

Further profitability improvement

Second quarter EBIT grew 24 % to CHF 115 million (Q2 2011: CHF 93 million), with a margin of 11.7 % (Q2 2011: 9.4 %). These figures do not include the Solar Segment, which is held as discontinued operations. This solid increase in profitability was primarily driven by higher efficiency due to Operational Excellence programs, and margin improvements from innovative products as well as an optimized portfolio.

Oerlikon Textile improved its margin from 7.3 % (Q2 2011) to 10.5 % (Q2 2012) with the strongest contribution from the manmade fiber business. Drive Systems margin rose from 3.3 % to 9.2 % and Coating from 17.6 % to 21.0 %. The Company’s performance resulted in a ROCE at the end of Q2 2012 of 17.5 % compared a FY 2011 ROCE of 16.5 %.

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Oerlikon