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Oerlikon aims to be pure-play global market leader in surface solutions

TopicalOerlikon aims to be pure-play global market leader in surface solutions

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Oerlikon, one of the leading global brands for surface engineering, polymer processing and additive manufacturing, announced its final strategic step to become a pure-play leader in the broad surface solutions markets. Besides, sharing its 2023 results, the company also explained its expectations for 2024 outlook. It is stated that 2023 Group orders, sales and EBITDA impacted by Polymer Processing Solutions downturn, while achieving strong performance in Surface Solutions with 7% organic sales growth at constant FX and sequentially improved profitability throughout 2023.

2023 results impacted by challenging environment in Polymer Processing Solutions

Oerlikon Group order intake decreased by 17.8% to CHF 2 457 million. Adjusted for FX and the Riri acquisition, orders decreased by 16.8%. Group sales decreased by 7.4% to CHF 2 693 million, including an FX headwind of -6.0% and an impact of +4.5% from the Riri acquisition. The FX-adjusted organic decline of 5.9% was driven by the filament downturn in Polymer Processing Solutions, while Surface Solutions saw an FX-adjusted organic sales growth of +7.0%.

Order intake for the fourth quarter decreased by 16.7%, including an FX impact of -5.5% and a positive impact from the Riri acquisition of 5.0%. Group sales decreased by 14.0% to CHF 633 million. This includes an FX headwind of 5.5% and a positive effect from the Riri acquisition of 4.2%. The organic FX-adjusted sales decline of 12.7% was driven by the filament downturn in Polymer Processing Solutions, while Surface Solutions posted a solid FX-adjusted organic sales growth of 7.6%.

Oerlikon yüzey çözümlerinde küresel pazar lideri olmayı hedefliyor  Görsel Kaynak: Oerlikon
2023 results impacted by challenging environment in Polymer Processing Solutions Image Source: Oerlikon

Oerlikon Executive Chairman Michael Suess commented: “In 2023, we managed short-term market headwinds and adverse currency effects (CHF -174 million on 2023 sales) and executed on our strategy,” and disclosed that their swift and decisive strategic actions, particularly in Quarter 4, streamlined their existing business and strengthened their foundation for growth and profitability.

Oerlikon will implement its strategic step over the next 12-36 months to be the market leader

Michael Suess stated that they announced their final strategic step to become a pure-play leader in the broad surface solutions markets with attractive organic and inorganic growth opportunities, noting: “We will further leverage our technology leadership to drive growth and profitability by expanding regionally and into new applications and end markets.” Suess also said that the board and management will evaluate options for the separation of Polymer Processing Solutions with the aim of optimizing value for all stakeholders. Oerlikon will implement this step over the next 12-36 months as Polymer Processing Solutions’ filament cycle recovers.

As for 2024, Oerlikon expects a high single-digit percentage decrease in FX-adjusted organic sales, and an operational EBITDA margin of 15.0-15.5%. Oerlikon anticipates growth in Surface Solutions to be offset by the downturn in Polymer Processing Solutions.

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