OC Oerlikon / Key word(s): Quarter Results
Ad hoc announcement pursuant to Art. 53 LR News Release
06-Aug-2024 / 06:30 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
| Second Quarter 2024 Results | Pfaeffikon Schwyz, Switzerland, August 6, 2024 |
Raising 2024 Guidance After Strong Execution in the First Half; Separation on Track Q2 Group order intake increased 1% year-over-year at constant FX, supported by both divisions. Polymer Processing Solutions orders up sequentially for the second quarter in a row. Group sales down 10% year-over-year at constant FX, reflecting subdued order intake in Polymer Processing Solutions in 2023. Surface Solutions outperformed in stagnant market conditions with sales up 2% at constant FX. Robust operational EBITDA margin despite negative operating leverage, supported by cost efficiency and innovation. Surface Solutions with ~230 bps improvement year-over-year. 2024 guidance: Confirming sales guidance with slightly better-than-expected performance in Polymer Processing Solutions. Operational EBITDA margin raised to 15.5-16.0% (previously 15.0-15.5%). Group Key Figures as of June 30, 2024 (CHF million)1 | | Q2 2024 | Q2 2023 | YoY | H1 2024 | H1 2023 | YoY | | Order intake | 651 | 657 | -0.9%2 | 1 294 | 1 338 | -3.3%4 | | Sales | 616 | 702 | -12.3%3 | 1 166 | 1 437 | -18.9%5 | | Operational EBITDA | 100 | 117 | -14.0% | 187 | 238 | -21.5% | | Operational EBITDA margin | 16.3% | 16.6% | -32 bps | 16.0% | 16.5% | -55 bps | | EBITDA | 96 | 110 | -12.9% | 180 | 224 | -19.4% | | EBITDA margin | 15.5% | 15.6% | -11 bps | 15.5% | 15.6% | -11 bps | | Net result6 | – | – | – | 39 | 75 | -48.1% |
1 Due to rounding, some totals may not correspond with the sum of the separate figures. For the reconciliation of operational and reported EBITDA figures, please see earnings presentation. 2 Impact from M&A: +0.0%, foreign exchange (FX): -2.0%, organic: +1.1%. 3 Impact from M&A: +0.0%, FX: -1.9%, organic: -10.4%. 4 Impact from M&A: +2.4%, FX: -4.4%, organic: -1.4%. 5 Impact from M&A: +1.9%, FX: -3.6%, organic: -17.1%. 6 Reported annually and semi-annually only. Michael Suess, Executive Chairman of Oerlikon, stated: “We achieved a strong first half-year performance in a challenging market environment. Our decisive execution resulted in organic order growth for the second quarter despite soft manufacturing PMIs. The strong focus on proactive cost management, innovation and rigorous pricing led to robust margins in both divisions. Our plans to separate Polymer Processing Solutions are on track.” Oerlikon Group 2024 Half-Year Overview In the first half of 2024, the Group’s order intake slightly decreased by 3.3% year-over-year to CHF 1 294 million and sales decreased by 18.9% to CHF 1 166 million, attributed to the transitory weakness in the Polymer Processing Solutions market. Operational EBITDA was at CHF 187 million, or 16.0% of sales, due to the downturn in Polymer Processing Solutions that was not compensated by the improvement in Surface Solutions margins. The net profit for the first half of the year decreased by 48.1% to CHF 39 million as a result of lower EBITDA. Surface Solutions Division Surface Solutions achieved 0.5% order growth year-over-year in Q2 at constant exchange rates despite weak markets. Customer purchasing behavior remained cautious due to soft industrial activity. While manufacturing PMIs in the Eurozone stayed in contraction, they were at neutral levels in the US and China. The division increased sales in Q2 by 2.1% year-over-year at constant exchange rates. Growth was particularly supported by strong performance in Oerlikon’s equipment and materials businesses for the aviation industry. Operational EBITDA margin improved 228 basis points to 18.7% despite higher input costs. The increase was supported by efficiency, innovation, pricing and mix. Key figures as of June 30, 2024 (CHF million)1 | | Q2 2024 | Q2 2023 | YoY | H1 2024 | H1 2023 | YoY | | Order intake | 389 | 395 | -1.4%2 | 780 | 777 | 0.4%4 | | Sales (to third parties) | 392 | 392 | 0.0%3 | 764 | 761 | 0.3%5 | | Operational EBITDA | 74 | 65 | 13.9% | 139 | 125 | 11.0% | | Operational EBITDA margin | 18.7% | 16.4% | 228 bps | 18.1% | 16.4% | 176 bps | | EBITDA | 73 | 62 | 17.3% | 137 | 120 | 13.9% | | EBITDA margin | 18.5% | 15.8% | 272 bps | 17.8% | 15.7% | 215 bps |
1 Due to rounding, some totals may not correspond with the sum of the separate figures. 2 Impact from M&A: +0.0%, FX: -1.9%, organic: +0.5%. 3 Impact from M&A: +0.0%, FX: -2.1%, organic: +2.1%. 4 Impact from M&A: +4.2%, FX: -4.3%, organic: +0.5%. 5 Impact from M&A: +3.5%, FX: -4.3%, organic: +1.1%. Polymer Processing Solutions Division Polymer Processing Solutions achieved improvement in its order intake sequentially for the second quarter in a row (Q2 2024: CHF 262 million; Q1 2024: CHF 251 million; Q4 2023: CHF 182 million). At constant exchange rates, order intake increased by 2.0% year-over-year. The division continued to see positive momentum in small- and mid-sized orders. The division’s sales declined 26.2% in constant currencies, reflecting the low order intakes in 2023. The division achieved a robust operational EBITDA margin of 11.7% despite lower sales volume. The margin was supported by proactive cost actions, counteracting operating leverage and limited pass-through of higher input costs to maintain volume. Key figures as of June 30, 2024 (CHF million)1 | | Q2 2024 | Q2 2023 | YoY | H1 2024 | H1 2023 | YoY | | Order intake | 262 | 263 | -0.1%2 | 514 | 561 | -8.4%4 | | Sales (to third parties) | 224 | 310 | -27.9%3 | 403 | 676 | -40.4%5 | | Operational EBITDA | 26 | 49 | -46.5% | 45 | 107 | -58.1% | | Operational EBITDA margin | 11.7% | 15.7% | -404 bps | 11.2% | 15.9% | -470 bps | | EBITDA | 25 | 44 | -43.4% | 44 | 99 | -55.9% | | EBITDA margin | 11.1% | 14.2% | -305 bps | 10.9% | 14.6% | -379 bps |
1 Due to rounding, some totals may not correspond with the sum of the separate figures. 2 Impact from M&A: +0.0%, FX: -2.1%, organic: +2.0%. 3 Impact from M&A: 0.0%, FX: -1.7%, organic: -26.2%. 4 Impact from M&A: +0.0%, FX: -4.4%, organic: -4.1%. 5 Impact from M&A: +0.0%, FX: -2.8%, organic: -37.6%. Additional Information To participate in the results’ conference call today at 10:30 CEST, please click on this link to join the webcast. To ask questions in the Q&A session, please dial in. | Country | Local toll call numbers | | Switzerland | +41 58 310 50 00 | | UK | +44 207 107 06 13 | | USA | +1 631 570 56 13 |
The interim (half-year) report 2024 in English can be downloaded at http://www.oerlikon.com/interimreport-2024, and the media release can be found at www.oerlikon.com/ir and www.oerlikon.com/pressreleases. 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 12 600 employees at 207 locations in 38 countries and generated sales of CHF 2.7 billion in 2023.
Disclaimer OC Oerlikon Corporation AG, Pfäffikon together with its affiliates, hereinafter referred to as “Oerlikon”, has made great efforts to include accurate and up-to-date information in this document. However, Oerlikon makes no representation or warranties, expressed or implied, as to the truth, accuracy or completeness of the information provided in this document. Neither Oerlikon nor any of its directors, officers, employees or advisors, nor any other person connected or otherwise associated with Oerlikon, shall have any liability whatsoever for loss howsoever arising, directly or indirectly, from any use of this document. The contents of this document, including all statements made therein, are based on estimates, assumptions and other information currently available to the management of Oerlikon. This document contains certain statements related to the future business and financial performance or future events involving Oerlikon that may constitute forward-looking statements. The forward-looking statements contained herein could be substantially impacted by risks, influences and other factors, many of which are not foreseeable at present and/or are beyond Oerlikon’s control, so that the actual results, including Oerlikon’s financial results and operational results, may vary materially from and differ from those, expressly or implicitly, provided in the forward-looking statements, be they anticipated, expected or projected. Oerlikon does not give any assurance, representation or warranty, expressed or implied, that such forward-looking statements will be realized. Oerlikon is under no obligation to, and explicitly disclaims any obligation to, update or otherwise review its forward-looking statements, whether as a result of new information, future events or otherwise. This document, including any and all information contained therein, is not intended as, and may not be construed as, an offer or solicitation by Oerlikon for the purchase or disposal of, trading or any transaction in any Oerlikon securities. Investors must not rely on this information for investment decisions and are solely responsible for forming their own investment decisions.
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