Oerlikon Group Posts Strong All Around Performance For 2017

Company Performance

Oerlikon Group Posts Strong All Around Performance For 2017

“2017 marks a year of strong financial performance for the Group and across all Segments. We recorded profitable growth by securing wins in our markets and industries, delivered on our strategy and sustained a high EBITDA margin after offsetting sizeable investment expenses,” said Dr. Roland Fischer, CEO Oerlikon Group.

“Our Surface Solutions Segment continued its steady upward trend, generating notable organic growth that was complemented by technology-strengthening acquisitions. Our manmade fibers business reported substantial recovery, driven mainly by the China-led filament equipment market. The drive systems business made significant gains in sales, orders and operating profitability. Consequently, we are actively evaluating all value-creating options for the Drive Systems Segment,” added Dr. Fischer.

Strong Group performance

In 2017, Oerlikon delivered on its targets and recorded top-line growth as well as improved operating profitability across all segments. The strong performance affirms the Group’s strategy and ability to capture business opportunities in its markets. The global economic expansion provided a steady backdrop for the upward trend in trade, export and capital investments in practically all of Oerlikon’s end markets, including automotive, aviation, tooling, general industries, energy, filament equipment, agriculture, construction and transportation.

Full-year Group order intake increased year-on-year by 24.5 % to CHF 3 005 million, including a positive currency impact of 0.7 %, while sales were 22.1 % higher year-on-year at CHF 2 847 million, including a positive currency impact of 0.8 %.

In 2017, the Group delivered on its strategy by strengthening the market and technology leadership of its Surface Solutions segment, securing wins in the recovering filament equipment market for the manmade fibers segment and successfully repositioning the drive systems segment. The Surface Solutions Segment generated 48 % of Group sales and 66 % of Group EBITDA in 2017, making it the largest contributor to Group sales and profits for the year.

The manmade fibers segment and the drive systems segment each accounted for 26 % of Group sales. Oerlikon also saw sales growth across all regions in 2017. Europe continued to represent the largest proportion of Group sales with 39 % (CHF 1 101 million), reflecting a 13.2 % increase compared to 2016. Asia followed with 37 % (CHF 1 073 million), up 42.9 % versus 2016, and North America contributed 19 % (CHF 538 million), 8.5 % higher compared to 2016. Sales in other regions came in at around 5 % CHF 135 million), an increase of 21.6 %. The Group generated 33.7 % of its revenue from services in 2017 (2016: 36.6 %).