Oerlikon manmade fibres third quarter results

Oerlikon manmade fibres third quarter results

Oerlikon Manmade Fibres Segment reports in the third quarter of the ongoing year higher order intake, less order backlog and sales than for the same quarter of 2012

In the third quarter order intake increased against 2012 6.3 % to CHF 272 million (CHF 256 million), order backlog dropped 10.3 % to CHF 566 million (CHF 631 million),  sales decreased by 6.6 % to CHF 282 (CHF 302 million).  EBIT increased 4.5 % to CHF 46 million (CHF 44 million), thus resulting in a higher EBIT Margin of 16.5 % (14.8 %). The increased EBIT and margin is explained by the strong underlying operational performance in compensation of some negative synergies related to the divestment of the natural fibres businesses to Saurer, respectively to Jinsheng.

In the first nine month of the ongoing year and compared to 2012 order intake increased 0.9 % to CHF 812 million (CHF 805 million), order backlog decreased 10.3 % and sales were at the same level of CHF 845 million.  EBIT dropped from CHF 149 million to CHF 135 million, thus the EBIT margin was lowered from 17.8 % to 16.0 %, without one time effects EBIT increased by 22.7 % against 2012, and the margin increased from 13.0 % to 16.0 %.

The decrease in third quarter’s sales is explained by execution of large scale project businesses accrued under the percentage-of-completion (POC) Accounting method.

Strong demand is reported for Oerlikon Neumag’s new S+ Bulked Continuous Fibre (BCF) Carpet yarn machine, particularly in North America accounting for 15 % of segment sales. On the other hand, Asia, predominantly China, remained the segment’s primary market. Asian sales accounted for 74 % and thereof 57 % went to China. Europe’s share is 9 %.During this reporting period, Oerlikon Barmag introduced the WINGS POY 1800 which delivers productivity increases of 20 % due to two additional bobbins in the winder.

Oerlikon Group had a higher order intake of 6.7 % to CHF 712 million (CHF 667 million), less order backlog (-3.6 %) of CHF 869 million (CHF 901 million) and less sales (-11.1 %) of CHF 697 million (CHF 735 million) in the third quarter. For the first nine month order intake increased 0.9 % to CHF 2188 million (2169 million), order backlog decreased 3.6 % or from CHF 901 million to CHF 869 million and sales decreased 3.3 % or from CHF 2213 million to CHF 2140 million. EBIT dropped 21.1 % or from CHF 332 million to CHF 262 million, resulting in an EBIT margin of 12.2 % (15.0 %).


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