Oerlikon aligning Manmade Fibres segment

02 Mar '16

3 min read

The Manmade Fibres segment which makes up for 30 per cent of Oerlikon Group sales is being aligned with current market dynamics.

According to an Oerlikon Group press release, the Manmade Fibres Segment will build on its leading technology position, while adapting its operating model to near-term market realities.

Meanwhile, at constant exchange rates, Group order intake for full year increased by 1.6 per cent and sales came in at around prior year's level.

Currency impact on top-line was around 6 per cent and including currency impacts, order intake was lower by 4.2 per cent at CHF 2,537 million and sales by 5.5 per cent at CHF 2,671 million for 2015.

Regionally, Europe accounted for the largest proportion of Group sales and accounted for 38.3 per cent at CHF 1,023 million, reflecting a 2.4 per cent increase compared to 2014.

Asia followed with a share of 37.7 per cent at CHF 1,007 million, representing a reduction of 10.7 per cent versus 2014, and North America contributed 19.5 per cent at CHF 520 million, a decline of 5.8 per cent over 2014.

Despite lower sales, Oerlikon was able to achieve a strong normalised EBITDA margin of 16.9 per cent at CHF 450 million, excluding restructuring costs.

Including the one-off restructuring impacts, EBITDA stood at CHF 338 million, correlating to an EBITDA margin of 12.7 per cent.

“EBIT for 2015, due to the restructuring and impairment charges, was a loss of CHF 306 million,” the Germany based company informed in the press release.

Excluding impairments, restructuring costs, amortisation of acquired intangibles from Metco, the normalised net result was CHF 207 million in 2015.

Following the inclusions of all the above-mentioned charges, reported net result for 2015 was a loss at CHF 418 million, and loss per share at CHF 1.24.

Cash flow from operating activities before changes in net current assets remained strong at CHF 393 million.

“Excluding the restructuring and impairment effects, the Group's normalised return on capital employed (ROCE) amounted to 11.1 per cent,” it stated.

The Oerlikon Group had equity attributable to shareholders of the parent of CHF 1,554 million, representing an equity ratio of 38 per cent in 2015 as against 44 per cent in 2014.

“The year-on-year decrease in the total balance sheet and equity primarily reflected the goodwill impairment related to the Drive Systems segment,” the company added. (AR)

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