Heat treatment and manmade fiber specialist Oerlikon has published its Q2 and half year 2019 reports.
The company’s order intake in Q2 slightly decreased year-on-year by 0.7% to CHF 672 million while there was a 5.3% increase in sales to CHF 700 million. In the first half of 2019, Oerlikon order intake declined year-on-year by 5.7% to CHF 1, 352 million, reportedly due to the record level of orders in the fibers business in the first half of 2018. Sales came in 4.3% higher than the prior year, reaching CHF 1,324 million.
‘In the increasingly challenging market environment, we delivered a good performance for the second quarter and for the first half of 2019, driven by strong results of our manmade fibers business,’ said Dr Roland Fischer, CEO Oerlikon Group. ‘We increased group sales and sustained operating profitability. Group orders came in slightly lower in the second quarter due to weak markets. The results underscore the resilience of our business while facing tough markets and confirm that we have a sound strategy and business model.
‘Economic growth around the world is stalling, resulting in lower investments in equipment and industrial production. These developments have impacted most of our end markets, from automotive to tooling and general industries, encompassing sectors such as semiconductors and electronics. While we still benefit from our structural growth initiatives, we have started to see weakening in our surface solutions business as reflected in the segment’s top line, margin and margin quality. Amid mounting geopolitical and market uncertainties, and given that the anticipated market recovery for our surface solutions business in the second half of the year is no longer visible, we are adjusting our guidance for 2019. Based on our reassessment, we expect to deliver around the same level of performance as for the full-year 2018.’
The company has adjusted its 2019 order intake to reach up to CHF 2.7 billion, with sales predicted to exceed CHF 2.6 billion.
This story uses material from Oerlikon, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.
