Oerlikon textile biz receives higher orders in Q2

25 Aug '09

6 min read

The Board of Directors has unanimously designated Hans Ziegler as Delegate of the Board of Directors and acting Chief Executive Officer for OC Oerlikon. This appointment is effective immediately. Dr. Uwe Krüger, CEO since 2007, is leaving the company. The Board of Directors thanks him for his significant contribution to OC Oerlikon and wishes him a successful continuation of his professional career. Dr. Krüger will stand available to contribute to the company.

Hans Ziegler has served on the board since 2008 and is familiar with the company. He and the management team will guarantee continuity of operational and restructuring programs in this highly challenging economic environment.

The Chairman of the Board of Directors Vladimir Kuznetsov comments as follows on the appointment of Hans Ziegler: "Our decision was made in light of OC Oerlikon's semiannual results. OC Oerlikon's sales fell by 40 percent and order intake by 39 percent in the first half of 2009 compared to H1 2008 amid an economic downturn of unprecedented proportions. The company urgently needs to secure coordination of strategic portfolio decisions with operational measures of OC Oerlikon's businesses. The announced management change ensures the alignment of the company's strategy with the interests of all stakeholders."

The Board of Directors confirms that OC Oerlikon's priorities are deleveraging, strengthening the balance sheet and successfully implementing all approved restructuring plans in order for the company to return to profitability. This includes consideration of all options with the objective to develop all of OC Oerlikon's business units so they and their employees can continue as successful businesses both within or outside the group.

Hans Ziegler will perform the duties of CEO until the Board of Directors selects a CEO among internal and external candidates.

In the first half-year 2009, Group sales from continued operations declined by 40 percent to CHF 1.4 billion. EBIT decreased to CHF -164 million (1HY 2008: CHF -147 million). Adjusted for restructuring costs and impairments, the operating result amounted to CHF -131 million (1HY 2008: CHF 116 million). Currency effects impacted sales by CHF -56 million and increased EBIT by 12 million. The net result for the Group stood at CHF -99 million (1HY 2008: CHF -313 million). The net result in the first half-year of 2008 was impacted by goodwill write-offs in the amount of CHF 343 million, whereas in the first half-year 2009 the sale of the business unit Oerlikon Space affected net result positively. In the first six months of 2009 discontinued operations contributed CHF 112 million to the net result. Equity totaled CHF 1 061 million (FY 2008: CHF 1 118 million), which corresponds to a slight improvement of the equity ratio to 21 percent of total assets. Net debt stood at CHF 1 826 million (FY 2008: CHF 1 702 million).

Segment Overview
For Oerlikon Textile, the prolonged decline in orders, which started at the end of 2007, stabilized at a historically low level in the first half of the year. This led to sales of CHF 430 million (-55 percent) and incoming orders of CHF 476 million (-47 percent) in the textile segment. The extensive restructuring program, which aims at reducing the break-even point by CHF 500 million by 2010, cushioned the impact of the fall in volume and is expected to improve performance further in the coming months. In the first half of 2009, EBIT totaled CHF -118 million compared to CHF -214 million for the prior-year period. EBIT for the first half-year of 2008 was impacted by CHF 200 million goodwill write-offs.

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