Outlook
Oerlikon expects this positive development at the Group level to continue in the fourth quarter of 2010. As for new orders, a 2009/2010 year-on-year comparison is expected to show a substantial increase, while a comparison of Q4 2010 and Q3 2010 is likely to reveal decreasing volumes in all segments except Coating and Drive Systems. Oerlikon Textile, Solar and Advanced Technologies anticipate considerable growth in sales compared to the previous quarters, while Coating, Vacuum and Drive Systems expect a more stable trend in Q4 2010.
Overall, the positive development seen during the first nine months and current order backlog has prompted management to raise its forecasts for 2010 as a whole. Growth in sales of slightly more than 20 percent now seems realistic for 2010 – mid-way through the year the outlook was around 15 percent. Additionally earning figures are also expected to show improvements.
"Due to the predominantly positive market development and our progress so far, we now anticipate an operational profit for the year as a whole," says Oerlikon CEO Buscher. At the end of the first half of 2010, a return to operational profitability was announced for the second half of the year. The target of generating a positive net profit in 2011 has been reaffirmed.
Segment performance
Oerlikon Textile
In a year-on-year comparison, Oerlikon increased its order intake by 112 percent to CHF 1.8 billion during the first three quarters of 2010. In Q3 2010 orders were below those received in Q2 2010 but still remain at a high level compared to the previous year. On September 30, 2010, orders on hand amounted to CHF 1.1 billion (September 30, 2009: CHF 0.5 billion). Sales improved by 56 percent to CHF 1.1 billion. The book-to-bill ratio for Q1-Q3 2010 was 1.6.
Key projects that Oerlikon Textile was able to bring on board, including a major order to produce synthetic fibers worth more than CHF 200 million and an order for the world's largest staple fiber plant with a daily processing capacity of 300 tons, reflect the customers' great willingness to invest. In this situation, the segment's greatest challenge will be to systematically complete the operational restructuring efforts and make all the structural adjustments required while flexibly developing the necessary production capacities and supply chains.
Growth was driven by the extremely sharp rise in demand both in the synthetic and in the natural fiber sector, particularly from China, India and Turkey. Some orders received extend well into 2012. Developments in the Oerlikon Barmag and Schlafhorst business units were therefore positive. Oerlikon Neumag was also able to pick up the pace as a result of the recovery in the markets for carpet yarn and staple fiber. As a supplier of components for the entire textile machine market, Oerlikon Textile Components benefitted from the general upturn in the textile machine industry. Within the segment, there has been no noticeable recovery at Oerlikon Saurer, specifically the areas of twisting and embroidery.
Oerlikon Textile expects the positive trend to continue in Q4 2010, specifically that order intake will normalize at a high level and that the large volume of orders on hand will have an increasing impact on sales figures.
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Oerlikon Textile GmbH & Co
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