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

Business development
Oerlikon Drive Systems continued to generate profitable growth
in 2011, as the expected normalization of business took hold in
the farming and construction sectors during the second half of
the year. The Segment’s order intake climbed by 13 % to
CHF 892 million (previous year: CHF 792 million). Order backlog
increased by 55 % and totaled CHF 213 million (previous
year: CHF 137 million). Sales rose by 12 % to CHF 821 million
in 2011 compared with CHF 733 million in 2010. Following an
EBIT of CHF –27 million in 2010, the Segment returned to profitability
in 2011 through systematic execution of its strategy to
accelerate profitable growth. Earnings recovered in 2011 to an
EBIT of CHF 49 million, and an EBIT margin of 6 %.
This growth was fueled by high global demand from customers
in the heavy agricultural equipment and energy sectors. Growth
was also generated in the construction machinery and material-handling
equipment areas, and the demand for innovative
transmission systems in high-performance cars continued to
remain strong.
In regional terms, Asia is a key growth market for Oerlikon Drive
Systems. The Segment increased sales in the region by 9 % in
2011, and Asia accounted for 11 % of total sales in 2011. India
and China generated growth momentum from both domestic
Key topics
Integration: The integration of Oerlikon Drive Systems under
single leadership was implemented in the first half of 2011.
Capacity expansion in Asia: The Segment is working to
expand its production capacity in Suzhou, China, where a
completely new facility is being built. As planned, the factory
has began operating in the first quarter of 2012 with first products.
In India, a location has been identified for a third plant and
development plans are underway.
Outlook: increased profitability, slight sales growth
Oerlikon Drive Systems expects to deliver a solid performance
in 2012. In its core markets agriculture, construction, energy
and high-performance sports cars, the Segment expects slight
sales growth and further increases in profitability resulting from
Operational Excellence programs.
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activity and increased demand by European and American
customers producing for export. In India, strong domestic demand
from agricultural and commercial vehicle manufacturers
resulted in high-capacity utilization levels. Segment performance
in European and North American markets was also
strong: the agricultural market in Europe grew once again, and
aerial-work platform activities accelerated in the United States
– the new Torque-Hub ® electrically driven planetary drives provide
innovative technology for this new generation of
machinery.
In terms of new products, three newly designed Oerlikon transmissions
were presented in high-performance cars of customers
in 2011: Aston Martin, Lamborghini, and McLaren, which
uses our latest dual clutch transmission (DCT) technology. In
the off-highway market, Oerlikon Drive Systems introduced a
new series of electric Torque-Hub ® transmissions for the heavy
commercial vehicles. The Segment was particularly active in
the on-highway electric vehicle market in 2011. Two large vehicle
manufacturers were supplied with Oerlikon transmission
prototypes for sports car electric drive systems and a large fleet
of electric city cars equipped with Oerlikon transmissions went
into service in Paris.
Operational Excellence: In addition to optimizing the network
of international production sites, the Segment is focusing
on improving its operational performance. Improved efficiency
in procurement and production processes has had a positive
impact on profitability, and along with efficiency improvements,
modifications and consolidation of the product portfolio, has
resulted in improved margins.