Interviews
News Flash
Fundamental business outlook remains positive – Oerlikon
26 Aug '08
5 min read
Early in 2008, it was expanded and accelerated with the goal of lowering the break-even point of the segment by more than CHF 300 million by 2010. The Simplify program consists of the following elements:
• Rationalize the product range and implement a consistent product platform strategy.
• Trim fixed costs by 20 percent compared to 2007.
• Reduce the European workforce by approx. 1,000 employees.
• Cut the number of production sites worldwide by half.
• Expand manufacturing capacity in China by a 30.000 square meter extension of the Suzhou facility.
• Target investments in R&D and modernizing production.
These actions will prepare Oerlikon Textile for a continuation of the cyclical slowdown expected until 2010, setting the stage for an improved market position and regaining profitability.
Oerlikon is following through on its announced strategy to streamline the portfolio and divest non-core or underperforming businesses. The sale of the Blu-ray business and the magnetic media equipment was successfully concluded in the first half of the year. The announced disposal of Oerlikon Optics is expected to be concluded in 2008.
CEO Krüger comments: “The focus of management and the newly elected board of directors of Oerlikon is twofold: firstly, implementing immediate measures to decrease costs and undertake necessary restructuring in Textile, Esec and Systems; and secondly, assuring management attention and capital resources are being concentrated on the fastest growing areas of the company.”
Strong developments in Oerlikon's core businesses:
Despite the challenging market environment, major industrial markets for Oerlikon's activities in thin film coating, vacuum, and space continued to perform strongly and led to expected results in these segments. The half year result of Oerlikon Coating was supported by a very good first and an even better second quarter for Oerlikon Balzers.
Balzers reported record sales – a growth of 12 percent compared to the second quarter of 2007 despite unfavorable currency factors. Once again, Oerlikon Vacuum posted strong sales growth of 7.4 percent to CHF 239 million. The process, coating and solar businesses have been the prime drivers of growth. The vacuum solutions business also performed well, exceeding expectations.
Click here to view more:
• Rationalize the product range and implement a consistent product platform strategy.
• Trim fixed costs by 20 percent compared to 2007.
• Reduce the European workforce by approx. 1,000 employees.
• Cut the number of production sites worldwide by half.
• Expand manufacturing capacity in China by a 30.000 square meter extension of the Suzhou facility.
• Target investments in R&D and modernizing production.
These actions will prepare Oerlikon Textile for a continuation of the cyclical slowdown expected until 2010, setting the stage for an improved market position and regaining profitability.
Oerlikon is following through on its announced strategy to streamline the portfolio and divest non-core or underperforming businesses. The sale of the Blu-ray business and the magnetic media equipment was successfully concluded in the first half of the year. The announced disposal of Oerlikon Optics is expected to be concluded in 2008.
CEO Krüger comments: “The focus of management and the newly elected board of directors of Oerlikon is twofold: firstly, implementing immediate measures to decrease costs and undertake necessary restructuring in Textile, Esec and Systems; and secondly, assuring management attention and capital resources are being concentrated on the fastest growing areas of the company.”
Strong developments in Oerlikon's core businesses:
Despite the challenging market environment, major industrial markets for Oerlikon's activities in thin film coating, vacuum, and space continued to perform strongly and led to expected results in these segments. The half year result of Oerlikon Coating was supported by a very good first and an even better second quarter for Oerlikon Balzers.
Balzers reported record sales – a growth of 12 percent compared to the second quarter of 2007 despite unfavorable currency factors. Once again, Oerlikon Vacuum posted strong sales growth of 7.4 percent to CHF 239 million. The process, coating and solar businesses have been the prime drivers of growth. The vacuum solutions business also performed well, exceeding expectations.
Click here to view more:
Oerlikon Textile GmbH & Co
Popular News
Leave your Comments
Editor’s Pick
Raksha Tated
Reverce, A modern day fusion streetwear apparel brand
Unenbat Ch.
GOBI Mongolian Cashmere USA Corp
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
