Home / Knowledge / News / Textiles / Global financial crisis dampens Oerlikon customers' ability to invest
Global financial crisis dampens Oerlikon customers' ability to invest
22
Oct '08
The opposing tendencies within the Oerlikon Group continued into the third quarter. While Oerlikon Balzers, Oerlikon Solar, Oerlikon Vacuum, Oerlikon Drive Systems and Oerlikon Space showed sustained growth, the markets at Oerlikon Textile and Oerlikon Esec continued their downward trend. Besides negative currency influences amounting to CHF 0.2 billion, the global financial crisis further dampened Oerlikon customers' ability to invest.

“Our core businesses show a high resilience to the global slowdown in the economic cycle,” says CEO Dr. Uwe Krüger. “In the segments affected by the downturn, production capacities are being adapted to the altered conditions, and further restructuring measures are consistently implemented and extended where necessary."

"We expect a reduction in annual sales for the whole year in the mid to high single-digit per cent range. The EBIT before impairment and restructuring charges will improve in the second half year compared to the first six months and is expected at approx. CHF 250 million for the full year“, says CEO Krüger.

The sales of the Oerlikon Group showed a reduction of -7.4 per cent to CHF 3.8 billion in the first nine months of 2008. The order intake amounted to CHF 3.7 billion, -16.9 per cent below the level of the previous year. Orders on hand had a value of CHF 1.7 billion.

The continuing downward trend in the world's largest textile markets China, India and Turkey, with an industry average of over 60 per cent reduction in order intake, led to a further slowdown of business for Oerlikon Textile. The segment achieved sales of CHF 1.4 billion in the first nine months of 2008 (-31.2 per cent). The semiconductor market, also still weak, had a similar dampening effect on the sales of Oerlikon Esec and Oerlikon Systems.

Overall, Oerlikon experienced a reduction in sales from the textile and semiconductor-related businesses of more than CHF 0.7 billion.

In terms of orders, the volume reduction in the textile and semiconductor business units for the first nine months amounts to a total of CHF 1.1 billion (-43 per cent). In contrast, all other businesses showed a growth in the order intake of CHF 0.3 billion until September, despite a quarter without large orders in Solar – the contracted Sunwell 120 MWp expansion is scheduled to be booked in 2009 as planned.

Possible postponements of projects under negotiation might lead to a temporary slowdown in order growth of the Solar segment in 2008.

The continued strong growth in the other businesses compensated in part for the negative influences of the textile and semiconductor businesses with growth of more than CHF 400 million (+23 per cent), despite negative currency influences of around CHF 110 million. Oerlikon Solar more than doubled its sales with CHF 442 million (an increase of 133.1 per cent) and is thus completely in line with this year's goal.

Click here to view more details:

Oerlikon


Must ReadView All

Textiles | On 25th Sep 2017

SVP Group to build $300 mn spinning plant in Sohar

ShriVallabh Pittie Industries (SVP) Group, a diversified yarn...

Apparel/Garments | On 25th Sep 2017

Vietnam textile sector to gain if EU FTA gets ratified

Experts feel the Vietnam-European Union (EU) free trade agreement...

Courtesy: Business Wire

Textiles | On 25th Sep 2017

Invista to use ADN technology at joint project in France

Invista, a leading producer of chemical intermediates, polymers, and...

Interviews View All

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Top executives
Textile industry

The foremost issue is bridging the skill gap

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search