Oerlikon reports strong growth
February 28, 2022
Oerlikon Group, Pfäffikon, Schwyz, Switzerland, has announced strong 2021 financial results, with the company reporting a year on year increase in group order intake of 25%, sales up 17% and operational EBITDA up 39%.
“We grew the company and delivered strong margin expansion in 2021, and expect profitable growth to continue in 2022,” stated Roland Fischer, CEO. “Operationally, we executed well, efficiently managed cost and successfully mitigated supply chain shortages, driving EBITDA above pre-COVID levels. Moreover, we successfully completed two accretive bolt-on acquisitions, further diversified our business and made excellent progress in our sustainability initiatives.”
Oerlikon Surface Solutions
Within the Surface Solutions segment, which includes the company’s Additive Manufacturing business, Oerlikon AM, order intake rose by 17.6% to CHF 178 million (2020: CHF 124 million) and sales increased 7.2%. Operational EBITDA also improved by 30.3% to CHF 239 million, said to be supported by sales growth and cost efficiency.
The Surface Solutions Division is said to have capitalised on gradual market recovery in general industries, automotive and tooling, which faced supply chain shortages in the second half of 2021. The aerospace market continued to be impacted by pandemic-related challenges, though Oerlikon noted a slight recovery in the second half of 2021, albeit off a low base. Effective cost programmes were executed, resulting in improved operating profitability.
2022 Outlook
“In 2022, we will continue to execute on our strategy to expand in growth markets, take advantage of recovering markets and focus on cost control. We expect Group sales to be around CHF 2.9 billion and our operational EBITDA margin to be around 17.5%,” Fischer stated.
Leadership Changes
After six years leading the company, Roland Fischer also announced his decision to step down, effective June 30, 2022.
“I am proud of what we have achieved at Oerlikon since I joined as CEO, and how the company has been transformed into a globally active engineering and technology company with a clear strategic focus and organisation,” he commented. “In the past two years, the Surface Solutions Division has successfully implemented cost measures and embarked on a transformation to empower the regions and become closer to key markets. My priority now is to ensure a smooth transition so that the company can continue to be a global market leader in advanced materials, surface engineering and polymer processing.”
Michael Suess, chairman of the board, added, “I very much regret, but fully understand and respect, Roland’s decision. On behalf of the board, I would like to express our deep gratitude for his extraordinary service. He has been a key driver in the successful transformation of Oerlikon. Our two divisions are distinct from each other in that they serve different customers in different industries and also differ in their growth potential. With the executive chair model, the division CEOs will gain agility in decision making, which will enable them to expedite the execution of their business and ensure sustainable growth.”
As of 1 July, 2022, the Executive Committee will consist of the two division CEOs: the Chief Financial Officer Philipp Mueller and the Chief Human Resources Officer Anna Ryzhova. These will be led by the executive chair.
The board of directors has also expressed its intention to nominate Zhenguo Yao for election at the AGM on April 5, 2022, to replace Suzanne Thoma. All other board members will be standing for re-election.
The full 2021 year results are available through the company’s site.
