Keystone-SDA
Industrial conglomerate Oerlikon suffered a decline in activity in the third quarter, partly disappointing market expectations and somewhat adjusting its forecasts for the full year.
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November 05, 2024 – 07:59
(Keystone-ATS) Between July and the end of September, the Schwyz group recorded a turnover down 6.9% year-on-year to 580 million francs. Foreign exchange effects penalized the company’s revenue by 1.8%.
The order book, which allows us to anticipate future activity, also contracted by 5.1% to 538 million francs, Oerlikon detailed Tuesday in a press release.
Profitability was not spared from the downward trend, with operational gross operating profit (EBITDA) falling by 7.3% to 98 million francs and the related margin falling by 0.1 percentage point to 16 .9%.
Planned separation
While revenues and order intake were lower than the forecasts of analysts surveyed by the AWP agency, profitability was better than expected.
The separation of the Polymer Processing Solutions business, announced in February, is proceeding “as planned” and is expected to be completed within 12 to 36 months, Oerlikon said. This operation could, however, result in job cuts, with the company announcing that it wants to “reduce” its support functions.
Management has also somewhat qualified its financial projections for the whole of 2024. It now expects organic turnover to fall by around 10% excluding currency effects, while the company had until now forecast a contraction between 5% and 9%. The Ebitda margin is expected to be around 16%, compared to 15.5% to 16.0% previously.
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