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Oerlikon delivers strong Q2 & H1 2021 results

Aug 05, 2021
Oerlikon delivers strong Q2 & H1 2021 results

According to Roland Fischer, CEO Oerlikon Group, the company delivered a strong second quarter and half-year performance, due to the strategy and the actions taken over the past two years.

He also said that, Surface Solutions continued to capture business as demand is picking up, and the improved EBITDA margin underlines the continued positive effects from the cost actions. Polymer Processing Solutions saw healthy demand in both filament and non-filament businesses. The strategic diversification in polymer processing, including flow control and sustainable recycling technologies, is expected to generate additional revenue opportunities in the coming years.

He added that in view of the strong business momentum and the acquisitions of INglass and Coeurdor, they are increasing the guidance. They expect 2021 sales to be around CHF 2.65 billion and the operational EBITDA margin to be around 16.5%. 

Group orders increased across all regions by 7.2% to CHF 647 million, and sales were up 23.2% to CHF 628 million, driven by recovery in Surface Solutions and higher demand in Polymer Processing Solutions. At constant exchange rates, Group sales increased by 22% to CHF 622 million.

In the first half of 2021, the Group’s order intake increased by 19.3% year-on-year to CHF 1 289 million and sales were up 15.1% to CHF 1 196 million. Operational EBITDA for the half year amounted to CHF 202 million, corresponding to a margin of 16.9%.

Table I: Reconciliation of Q2 2021 and H1 2021 operational EBITDA and EBITDA1

In CHF million

Q2 2021

Q2 2020

H1 2021

H1 2020

Operational EBITDA

111

56

202

117

Income/Expenses related to restructuring

1

-21

1

-21

Expenses related to discontinued activities

-1

-3

Expenses related to acquisition and integration costs2

-1

-3

EBITDA

112

34

200

92

 

As of June 30, 2021, Oerlikon had CHF 486 million of net debt, attributed to acquisitions and dividend payment. Cash flow from operating activities for the first half of 2021 was CHF 36 million, compared to CHF -5 million in 2020, due to the improved net result.

Surface solutions markets, except aerospace and power generation, continued to recover across all regions in the second quarter. Automotive saw strong recovery in the first half of 2021 (Q2: +49% year-over-year) despite challenges with chip shortage.

The Polymer Processing Solutions Division delivered another strong quarter, driven by demand for filament and plant engineering solutions in China, including staple fibers and continuous polycondensation plants.

The INglass acquisition, completed in the beginning of June 2021, accelerated Oerlikon’s strategy of diversifying its polymer processing business into non-filament areas, such as hot runners and engineering and consultancy services for developing advanced polymer processing products. This acquisition and other organic diversification efforts, such as sustainable recycling of polymers, are expected to generate additional revenues for Oerlikon in the coming years.

Oerlikon is a global innovation powerhouse for surface engineering, polymer processing and additive manufacturing. Headquartered in Pfäffikon, Switzerland, the Group operates its business in two Divisions – Surface Solutions and Polymer Processing Solutions.

Source: Oerlikon Press Release

Image Source: Google Images

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