- Group sales increased 5 % (+11 % FX adjusted), driven by Surface Solutions; order intake impacted by order postponements in Polymer Processing Solutions.
- Group operational EBITDA margin of 15.8 %. Surface Solutions impacted by higher input costs and sales mix effects from increase in demand for equipment and materials.
- Successfully closed acquisition of Riri to become a leader in luxury metalware as announced on March 1, 2023.
- Confirming full-year guidance: sales, including Riri, of CHF 2.90 – 2.95 billion at constant exchange rates and operational EBITDA margin of 16.0 – 16.5 %. Expecting positive impacts on margin from pricing measures and previously announced cost actions throughout 2023.
Pfaeffikon, Schwyz, Switzerland , May 3, 2023
“We delivered a first-quarter performance in line with our expectations and are on track with our strategy execution,” said Michael Suess, Executive Chairman, Oerlikon. “We expect to see positive effects from pricing measures and previously announced cost actions throughout 2023 to strengthen margins.”
“With Riri, we diversified our surface solutions business into the luxury segment. We will continue to execute on our mid-term growth strategy, focusing on diversification, profitability and sustainability,” added Michael Suess.
First Quarter In Line With Expectations
Group orders decreased by 13.9 % (9.7% FX adjusted) to CHF 681 million. Group sales improved by 5.4 % to CHF 735 million, driven by Surface Solutions. At constant exchange rates, Group sales increased by 10.7 %.
Group operational first quarter EBITDA was CHF 116 million, or 15.8 % of sales, representing a year-over-year decrease of 150 basis points (bps), attributed to mix effects and higher input costs. Q1 2022 operational EBITDA was CHF 120 million, or 17.3 % of sales. First quarter 2023 operational EBIT was CHF 63 million, or 8.6 % of sales (Q1 2022: CHF 66 million; 9.5 %).
Group first quarter EBITDA was CHF 114 million, or 15.5 % of sales (Q1 2022: CHF 112 million, 16.1 %), and EBIT was CHF 60 million, or 8.1 % of sales (Q1 2022: CHF 57 million, 8.2 %). The reconciliation of the operational and unadjusted figures can be seen in the tables below.
The division increased order intake by 1.8 % (6.3 % FX adjusted) to CHF 382 million and sales by 12.5 % (17.5 % FX adjusted), attributed to tooling, general industries, aerospace and energy.
Operational EBITDA decreased by 3.4 % to CHF 59 million, or 15.8 % of sales, compared to CHF 61 million, or 18.4 % of sales in Q1 2022, due to higher input costs and higher proportion of equipment and materials sales. Operational EBIT was CHF 23 million, or 6.2 % of sales (Q1 2022: CHF 23 million, or 7.0 % of sales). EBITDA was CHF 58 million, or 15.6 % of sales, compared to CHF 56 million, or 17.0 % of sales in the previous year. EBIT was CHF 21 million, or 5.6 % of sales (Q1 2022: CHF 18 million, or 5.4 % of sales).
The division saw the anticipated decrease in orders, driven mainly by filament demand in China. Order intake declined by 28.0 % (24.1 % FX adjusted) to CHF 298 million. Sales declined by 1 % to CHF 366 million year-over-year. At constant exchange rates, sales increased by 4.6 %, supported by deliveries from the strong order book in the previous years.
Operational EBITDA decreased by 5.2 % to CHF 55 million, or 15.1 % of sales, compared to CHF 58 million, or 15.7 % of sales, in Q1 2022. Margin was impacted by mix effects and higher input costs. Operational EBIT was CHF 42 million, or 11.3 % of sales (Q1 2022: CHF 44 million, or 12.0 % of sales). EBITDA was CHF 55 million, or 15.1 % of sales (Q1 2022: CHF 58 million, 15.7 %). EBIT was CHF 41 million, or 11.3 % of sales (Q1 2022: CHF 44 million, or 12.0 % of sales).
About Oerlikon
Oerlikon (SIX: OERL) is a global innovation powerhouse for surface engineering, polymer processing and additive manufacturing. The Group’s solutions and comprehensive services, together with its advanced materials, empower customers by improving and maximizing the performance, function, design and sustainability of customers’ products and manufacturing processes in key industries. Pioneering technology for decades, everything Oerlikon invents and does is guided by its passion to support customers’ goals and foster a sustainable world. Headquartered in Pfaeffikon, Switzerland, the Group operates its business in two Divisions – Surface Solutions and Polymer Processing Solutions. It has a global footprint of more than 13 000 employees at 205 locations in 37 countries and generated sales of CHF 2.9 billion in 2022.