Oerlikon: fall of more than a quarter in turnover in 1Q – 05/07/2024 at 09:15

Oerlikon: fall of more than a quarter in turnover in 1Q – 05/07/2024 at 09:15
Oerlikon: fall of more than a quarter in turnover in 1Q – 05/07/2024 at 09:15

Oerlikon suffered in 2023 from a difficult market environment for the textile industry. (AFP / JEAN-CHRISTOPHE VERHAEGEN)

The Swiss industrial group Oerlikon recorded a sharp decline of more than 25% in its sales in the first quarter in a market which remains difficult for the textile industry.

Over the first three months of the 2024 financial year, the group’s turnover fell by 25.1% year-on-year to 550 million francs (563.5 million euros), he announced on Tuesday. in a press release.

This is in line with the average expectations of analysts surveyed by the financial agency AWP.

New orders fell by 5.6% to 642 million Swiss francs (657.7 million euros) but were significantly higher than expectations which averaged around 579 million Swiss francs.

The group confirmed the outlook for 2024.

“We have done a good job and achieved solid results, despite the weak economy, particularly in Germany and China,” commented Michael Süss, CEO of the group.

Oerlikon suffered in 2023 from a difficult market environment for the textile industry.

In February, it announced that it wanted to separate within one to three years from its polymer processing division which caused its orders to plunge in 2023 and which again posted a 51% drop in sales in the first quarter to only 179 million francs.

Order intake for this division fell by almost 16% year-on-year to 251 million Swiss francs.

It manufactures equipment for synthetic fibers for clothing, carpets and upholstery fabrics but also for technical fibers in industry, including the automobile industry, for example for seat belts and airbags.

The industrial group, whose origins date back to the mid-19th century with the creation of a foundry in Saint-Gall in eastern Switzerland and the manufacturing of embroidery machines in its textile branch, therefore intends to refocus on its division of surface solutions, which manufactures coatings for the automobile and aeronautics industries, among others.

This saw its turnover rise by 0.6% to 371 million Swiss francs (380 million euros) for new orders up 2.3% to 391 million Swiss francs (400 million euros).

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