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Oerlikon expects modest recovery of business volumes
01 Apr '10
5 min read
• warrants granted to the lenders to purchase shares corresponding to between 1 percent and 5 percent of Oerlikon's share capital on a fully diluted basis expiring on 30 June 2014, such shares to come from a newly proposed conditional capital;
• an option granted to the lenders to purchase part or all of Oerlikon's 1.3 million treasury shares (representing 9.3 percent of the current share capital) at market value by 14 April 2010 against conversion of debt;
• a waiver of between CHF 25 million and CHF 125 million of debt by the lenders; and
• the conclusion of a new facility agreement with the lenders with three tranches in a total amount of approximately CHF 1,490-1,740 million (depending on the take-up of the rights offering) and maturity on 30 June 2014, which will replace the remaining outstanding portion of the existing syndicated loan facilities. The new facility agreement also contains a requirement that a majority of the members of the Board of Directors be independent from Renova and any other party or group of parties controlling more than 20 percent of Oerlikon's voting rights.
All measures together are expected to result in a reduction in Oerlikon's net financial debt of approximately CHF 1,050-1,300 million. All measures are mutually dependent on each other and the capital changes have to be approved by Oerlikon's Annual General Meeting of shareholders on 18 May 2010.
Oerlikon Textile: The segment posted new orders of CHF 1 170 million in 2009 (-14.2 percent year-on-year), with orders on hand totaling CHF 489 million (previous year: CHF 443 million), sales of CHF 1 046 million (-38.1 percent) and EBIT of CHF -424 million (previous year: CHF -281 million). Included in the EBIT are restructuring costs of CHF 49 million and a goodwill impairment charge of CHF 202 million.
The 2008 result was negatively impacted by a goodwill impairment charge of CHF 200 million and restructuring costs of CHF 55 million. Due to worsening market conditions, restructuring programs initiated were extended during the course of the year. Targeted cost savings were achieved: fixed costs could be reduced by over 20 percent and hence the break-even point was lowered by CHF 400 million. A comparison between the two halves of the year in 2009 indicates that recovery in the textile machinery sector began in mid-2009.
The markets for synthetic fiber systems and textile machinery components, in particular, picked up markedly followed by a steady upward trend for natural fiber equipment, especially in India and Indonesia. All in all, new orders received by Oerlikon Textile during the second half of the year were up by more than 45.8 percent compared to the first six months while sales increased by 43.3 percent.
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• an option granted to the lenders to purchase part or all of Oerlikon's 1.3 million treasury shares (representing 9.3 percent of the current share capital) at market value by 14 April 2010 against conversion of debt;
• a waiver of between CHF 25 million and CHF 125 million of debt by the lenders; and
• the conclusion of a new facility agreement with the lenders with three tranches in a total amount of approximately CHF 1,490-1,740 million (depending on the take-up of the rights offering) and maturity on 30 June 2014, which will replace the remaining outstanding portion of the existing syndicated loan facilities. The new facility agreement also contains a requirement that a majority of the members of the Board of Directors be independent from Renova and any other party or group of parties controlling more than 20 percent of Oerlikon's voting rights.
All measures together are expected to result in a reduction in Oerlikon's net financial debt of approximately CHF 1,050-1,300 million. All measures are mutually dependent on each other and the capital changes have to be approved by Oerlikon's Annual General Meeting of shareholders on 18 May 2010.
Oerlikon Textile: The segment posted new orders of CHF 1 170 million in 2009 (-14.2 percent year-on-year), with orders on hand totaling CHF 489 million (previous year: CHF 443 million), sales of CHF 1 046 million (-38.1 percent) and EBIT of CHF -424 million (previous year: CHF -281 million). Included in the EBIT are restructuring costs of CHF 49 million and a goodwill impairment charge of CHF 202 million.
The 2008 result was negatively impacted by a goodwill impairment charge of CHF 200 million and restructuring costs of CHF 55 million. Due to worsening market conditions, restructuring programs initiated were extended during the course of the year. Targeted cost savings were achieved: fixed costs could be reduced by over 20 percent and hence the break-even point was lowered by CHF 400 million. A comparison between the two halves of the year in 2009 indicates that recovery in the textile machinery sector began in mid-2009.
The markets for synthetic fiber systems and textile machinery components, in particular, picked up markedly followed by a steady upward trend for natural fiber equipment, especially in India and Indonesia. All in all, new orders received by Oerlikon Textile during the second half of the year were up by more than 45.8 percent compared to the first six months while sales increased by 43.3 percent.
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Oerlikon Group
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