The new visibility of Oerlikon Manmade Fibres business
Since the natural fibre business was acquired by the new Saurer Group, in today’s press release one can see, at least for the two last quarters, how the manmade fibre business of Oerlikon is really performing
In the second quarter order intake dropped from CHF 285 million to CHF 250 Million, or -12.0 %. Also sales decreased from CHF 271 million to CHF 256 million (-6,0 %) and also order back log was down from CHF 682 million to CHF 599 million (-12.0 %). EBIT however increased from CHF 33 million to CHF 40 million, thus EBIT margin increased from 12.5 % to 15.5 %.
Sales in the first half of 2013 increased four percent or from CHF 542 million to CHF 563 million, order intake was two percent lower and decreased from CHF 549 million to CHF 540 million.
The order level decreased in the second quarter to normal levels. On the other hand it opposes the statement that this textile segment remaining with Oerlikon Group is less cyclical, because also there variations occur, even if they are smaller than in the disposed business of natural fibres.
TextileFuture voices the opinion that it is not a given fact, even being the largest segment – the other activities are Vacuum and Coating and Drive Systems – will remain forever with Oerlikon Group, especially under the aspect that the major investor still seeks to combine the businesses of Sulzer (where his group is holding also a stake) with Oerlikon Group. Of course, one might object that the profitability of Manmade Fibres is higher than with the three other activities, but we foresee changes in the future mixture of Oerlikon Group activity, and it is not written in stone that Manmade Fibres will perform in the future as in the past.