Oerlikon Reports Q2 2012 Results
The company's earnings before interest and taxes (EBIT) totaled 115 million Swiss francs, 24-percent higher than Q2 2011 EBIT — with margins improving to 11.7 percent and strong improvement reported in the Textile, Drive Systems and Coating businesses. Q2 sales remained stable, totaling 990 million Swiss francs, and included a 17-percent increase in sales to China, which represented 31 percent of total group sales. Oerlikon reported a first-half (H1) 2012 cash flow from operations totaling 205 million Swiss francs, and a balance sheet at the end of that period showing a 36-percent equity ratio. For FY 2012, the company is now projecting sales comparable to 2011 sales and an EBIT margin of some 11.5 percent, excluding the one-time effect of the sale of property in Arbon, Switzerland, and a reported EBIT margin of 12.5 percent.
Oerlikon Textile's man-made fiber business had continuous strong growth and is the largest business in that segment. According to the company, the segment's share of the total spinning machine market now totals more than 25 percent.
The EBIT margin from Textile Segment sales grew from 7.3 percent in Q2 2011 to 10.5 percent in Q2 2012, owing to increased demand for its energy-saving products and fulfillment of Operational Excellence procedures. Order intake totaling 496 Swiss francs and backlog totaling 1,012 million Swiss francs were lower than Q2 2011 totals of 569 million Swiss francs and 1,339 million Swiss francs, respectively. They were lower particularly for machinery for processing natural fibers, but order intake for man-made fiber machinery was at a five-quarter high, with an order backlog extending to 2014. The segment's Components business reported stable, solid performance.
Oerlikon Textile also reported the sale of its Melco embroidery machinery business to Mizar Holding Co. Inc., Aurora, Ill., for an undisclosed price, at the end of Q2 2012.
August 7, 2012