par Oerlikon Metco Inc. (isin : CH0000816824)
Continued Strategy Execution; Successfully Closed Acquisition of Riri
OC Oerlikon / Key word(s): Quarter Results
Continued Strategy Execution; Successfully Closed Acquisition of Riri
03-May-2023 / 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.
- 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.
Key Figures of the Oerlikon Group as of March 31, 2023 (in CHF million)
Q1 2023 Q1 2022 ∆
Order intake
681
790
-13.9%
Sales
735
698
5.4%
Operational EBITDA1
116
120
-3.8%
Operational EBITDA margin1
15.8%
17.3%
-150 bps
Operational EBIT1
63
66
-4.7%
Operational EBIT margin1
8.6%
9.5%
-90 bps
1 For the reconciliation of operational and unadjusted figures, please see tables I and II on page 2 of this media release.
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.
Table I: Reconciliation of Q1 2023 Operational EBITDA and EBITDA1
In CHF million
Q1 2023
Q1 2022
Operational EBITDA
116
120
Expenses from restructuring
0
-1
Expenses related to discontinued activities2
-1
-4
Expenses related to acquisition and integration costs
-1
-4
EBITDA
114
112
Table II: Reconciliation of Q1 2023 Operational EBIT and EBIT1
In CHF million
Q1 2023
Q1 2022
Operational EBIT
63
66
Expenses from restructuring
0
-1
Impairment charges
0
0
Expenses related to discontinued activities2
-2
-5
Expenses related to acquisition and integration costs
-1
-4
EBIT
60
57
1 All amounts (including totals and subtotals) have been rounded according to normal commercial practice. Thus, an addition of the figures presented can result in rounding differences. 2 Includes costs from discontinued operations (Russia and inline ePD). Q1 2022 restated due to the termination of the inline ePD business.
Division Overview
Surface Solutions Division
Key Figures of the Surface Solutions Division as of March 31, 2023 (in CHF million)
Q1 2023 Q1 2022 ∆
Order intake
382
376
1.8%
Sales (to third parties)
369
328
12.5%
Operational EBITDA
59
61
-3.4%
Operational EBITDA margin
15.8%
18.4%
-260 bps
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).
Polymer Processing Solutions Division
Key Figures of the Polymer Processing Solutions Division as of March 31, 2023 (in CHF million)
Q1 2023 Q1 2022 ∆
Order intake
298
415
-28.0%
Sales (to third parties)
366
369
-1.0%
Operational EBITDA
55
58
-5.2%
Operational EBITDA margin
15.1%
15.7%
-60 bps
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).
Additional Information
Oerlikon will present its results during a conference call today beginning at 10:30 CEST. To participate, 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 media release, including a full set of tables, can be found at www.oerlikon.com/pressreleases and www.oerlikon.com/ir.
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.
For further information, please contact:
Sara Vermeulen AnastasiHead of Group Communications
Tel.: +41 58 360 98 52
sara.vermeulen@oerlikon.com
www.oerlikon.com Stephan Gick
Head of Investor Relations
Tel: +41 58 360 98 50
stephan.gick@oerlikon.com
www.oerlikon.com
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
End of Inside Information
| Language: | English |
| Company: | OC Oerlikon |
| Churerstrasse 120 | |
| CH - 8808 Pfäffikon SZ | |
| Switzerland | |
| Phone: | +41 58 360 96 96 |
| Fax: | +41 58 360 91 96 |
| E-mail: | info@oerlikon.com |
| Internet: | www.oerlikon.com |
| ISIN: | CH0000816824 |
| Valor: | 863037 |
| Listed: | Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt, Munich, Stuttgart, Tradegate Exchange; SIX Swiss Exchange |
| EQS News ID: | 1622699 |
| End of Announcement | EQS News Service |
1622699 03-May-2023 CET/CEST