Oerlikon Group reports positive Q2 and half-year results
August 4, 2021
Oerlikon Group, Pfäffikon, Schwyz, Switzerland, has announced its second-quarter and half-year results for 2021. The company reported an increase in half-year order intake of 19.3% year on year, from CHF 1,081 million to CHF 1,289 million, and an increase of 7.2% from the same quarter in 2020. Sales figures also increased from CHF 1,039 million to CHF 1,196 million (+15.1%) during the half-year, and CHF 510 million to CHF 628 million (+23.2%) from the second quarter of 2020 to 2021.
“We are pleased to deliver a strong second quarter and half-year performance, confirming our strategy and the actions we took over the past two years,” stated Dr Roland Fischer, Oerlikon CEO. “Surface Solutions continued to capture business as demand picks up, and the improved EBITDA margin [Q2: +660 bps; HY: +560 bps] underlines the continued positive effects from our cost actions.”
Oerlikon Surface Solutions
Within the Surface Solutions segment, which includes the company’s Additive Manufacturing business, Oerlikon AM, order intake increased by 45% to CHF 345 million (Q2 2020: CHF 238 million) and sales rose by 22% to CHF 320 million, compared to CHF 262 million in the same quarter of 2020. Order intake for the first half of 2021 also saw an increase year on year, up 17.7% to CHF 672 million from CHF 571 million.
The segment’s markets, with the exception of aerospace and power generation, continued to recover across all regions in the second quarter. Automotive saw strong recovery in the first half of 2021 (Q2: +49% year on year), despite challenges with microchip shortages. Tooling (Q2: +27%) and general industries (Q2: +24%) also reported positive trends. The significant year-on-year increase in order intake and sales was attributed to both business improvements and recovery from the pandemic-impacted 2020 results.
Q2 operational EBITDA improved by ~230% and the EBITDA margin by 1,180 bps, driven by positive operating leverage, cost control and business mix. Operational EBIT was CHF 20 million, or 6.2% of sales. EBITDA was CHF 62 million or 19.2% of sales (Q2 2020: CHF -4 million, -1.5%). EBIT was CHF 20 million or 6.1% of sales (Q2 2020: CHF -50 million, or -19.1%).
The addition of Coeurdor in Q2 and its industry knowledge is intended to open up revenue opportunities for Oerlikon in the growing luxury sector.
Fischer concluded, “In view of our strong business momentum and the acquisitions of INglass and Coeurdor, we are increasing our guidance. We expect 2021 sales to be around CHF 2.65 billion (previously: CHF 2.35-2.45 billion), and the operational EBITDA margin to be around 16.5% (previously: 15.5%-16.0%).”
The full report is available via the group’s website.
