Annual Report 2011 (5.07 MB, PDF-File) - Oerlikon

Achieving a new level
of profitability
Continuing its positive development in 2011, Oerlikon recorded
good results at the end of the reporting period: key financial
figures have improved considerably and a new level of profitability
was reached with a record EBIT margin of 10 %. Operational
Excellence increased significantly. The product range is
more competitive than ever, and the organizational structure
has been streamlined. Through the systematic execution of the
3-Year Business Plan (3YBP), the Group has made sustainable
progress. The company has returned to a sound position that
enables active shaping of growth over the long-term. The aim
is to tap further potential, continue to improve profitability over
the mid-term and become best-in-class across the portfolio.
Oerlikon Textile, Vacuum and Coating are operating on a new,
record level of profitability and ended the year with record margins,
as did Advanced Technologies. Oerlikon Drive Systems
made a significant step forward in terms of profitability and laid
the foundation for further improvements. Oerlikon Solar was
faced with a sharp market downturn, and measures to offset
this downturn are being implemented.
In 2011, the company rolled out a renewed corporate identity
worldwide. The related Core Values – Integrity, Team Spirit, Excellence
and Innovation – contributed to the development of a
high-performance corporate culture which positively impacted
the course of business.
Regionally in 2011, the Group sharpened its focus on Asia, and
especially China, in order to take full advantage of opportunities
in the region. Oerlikon has been doing business in Asia for almost
50 years and can draw on the strong positions it already
holds in these key markets. The site in Suzhou, China, is now the
Group’s largest location worldwide. Sales in Asia rose strongly,
climbing to 49 % in 2011 from 44 % in 2010. Oerlikon also
launched initiatives in other growth markets to strike a geographical
balance for its business over the mid- and long-term.
The Oerlikon Group expects to build on its 2011 performance
and generate an EBIT margin of around 10 % in 2012, while
order intake and sales are expected to decrease by up to 5 %.
The Group’s key figures for 2011 at a glance:
Sales increased by 16 % to CHF 4 182 million from
CHF 3 601 million in the previous year, fueled by orders
received in the first half of the year and a full order book.
EBITDA rose to CHF 605 million (previous year: CHF 278 million),
reflecting an EBITDA margin of 14 %.
EBIT margin reached a record high of 10 %, as EBIT climbed
to CHF 419 million from CHF 51 million in 2010.
Net profit grew markedly to CHF 224 million (previous year:
CHF 5 million).
Order intake decreased by 11 % to CHF 4 043 million (previous
year: CHF 4 520 million) as market demand continued to
normalize as expected.
15
Order backlog decreased by 13 % and totaled CHF 1 481 million
(previous year: CHF 1 702 million).
The workforce increased 3 % to 17 227, primarily as a result of
new hires at Drive Systems and Coating as the Group expanded
into Asia. Personnel expenses, however, declined by
3 % to CHF 984 million. Oerlikon is carefully managing the further
development of its workforce.
Adjusted for currency translation effects, sales would have
climbed to 30 % to CHF 4 688 million, and EBIT would have totaled
CHF 490 million. As a result of the natural hedging inherent
in the global network of production sites and suppliers, effects of
the strong Swiss franc had a negligible impact on EBIT margin.
Oerlikon’s Swiss franc-denominated cost base amounts to only
about 10 % of its total costs and is constantly under review.
Improved performance in the Segments
At Oerlikon Textile, sales rose by 23 %, climbing to
CHF 2 037 million. EBIT totaled CHF 183 million (previous year:
CHF 21 million), resulting in a record EBIT margin of 9 %. Order
intake decreased as expected, but was nonethless very strong
at CHF 1 977 million (previous year: CHF 2 509 million). At
Oerlikon Barmag, orders extend in part through 2014. Order
backlog decreased slightly to CHF 1 053 million (previous year:
CHF 1 197 million).
Oerlikon Drive Systems increased sales by 12 % to CHF 821 million.
Delivering EBIT of CHF 49 million, the Segment showed
significantly improved profitability (previous year: CHF –27 million).
Order intake rose to CHF 892 million (an increase of 13 %
over the previous year) and continued its recovery. Order backlog
totaled CHF 213 million (previous year: CHF 137 million).
Oerlikon Vacuum focused on improving profitability and
achieved a best-ever EBIT margin of 14 %. EBIT nearly doubled,
climbing from CHF 30 million in 2010 to CHF 59 million in
2011. Order intake totaled CHF 400 million and continued to
normalize as expected (previous year: CHF 438 million). The
Segment’s sales remained stable at CHF 409 million (previous
year: CHF 410 million).
Oerlikon Solar’s sales grew, through execution of existing orders,
by 27 % to CHF 323 million (previous year: CHF 254 million).
The Segment was able to improve profitability, but did not
reach the level planned. EBIT totaled CHF –10 million (previous
year: CHF –59 million). Order intake totaled CHF 202 million, a
decline of 12 % over the previous year’s level of CHF 230 million.
Order backlog reached CHF 130 million (previous year:
CHF 255 million).
Oerlikon Coating continued performing strongly in 2011. The
Segment achieved a record EBIT margin of 20 % as EBIT
climbed to CHF 97 million (an increase of 87 %). Sales climbed
by 15 % to CHF 484 million from CHF 422 million in 2010.