Pfaffikon - We accelerated our productivity programs to mitigate the impacts from the pandemic and are ahead of schedule, said Dr. Roland Fischer, CEO Oerlikon Group.
'We have significantly reduced cost and are putting in place a more flexible cost structure to strengthen our foundation.'
'Despite the pandemic, the Manmade Fibers Segment effectively navigated the challenges and saw a strong increase in orders, driven by a quick recovery in China and higher demand for nonwoven systems used to produce face masks,' added Dr. Fischer. 'The Surface Solutions Segment experienced significant demand challenges due to the lockdowns. Toward the end of the quarter, we saw some encouraging signs of moderate recovery in automotive and precision components in China and Germany. The recovery of the economy and markets remains uncertain.'
'We have a strong cash position of CHF 600 million, a healthy balance sheet and expect to see improvements in margins and net liquidity in the second half of the year. We will continue implementing the structural programs to strengthen our cost and competitive market position and further invest in our sustainable innovations. We have the technology, liquidity and talents to take advantage of the upswing when markets turn around,' concluded Dr. Fischer.
Oerlikon Group Second-Quarter Review
In the second quarter of 2020, the global economy stalled with the COVID-19 pandemic outbreak. The lockdowns imposed by governments impacted the supply chain and demand across regions and industries, including the end markets of the surface solutions business, namely aviation, automotive, tooling and general industries, power generation and oil & gas.
As a result of the pandemic and adverse currency movements, Group order intake decreased year-on-year by 10.1% to CHF 604 million and Group sales decreased by 27.2% to CHF 510 million. At constant exchange rates, sales were CHF 542 million, corresponding to a decline of 22.6% year-over-year. The operational EBITDA for the second quarter, excluding the restructuring charges, was CHF 55 million, corresponding to a margin of 10.8%. EBITDA was CHF 34 million, or 6.7% of sales. Operational EBIT for Q2 2020 was CHF 4 million, or 0.9% of sales and EBIT was CHF-22 million, or -4.2% of sales.
About Oerlikon
Oerlikon (SIX: OERL) engineers materials, equipment and surfaces and provides expert services to enable customers to have high-performance products and systems with extended lifespans. Drawing on its key technological competencies and strong financial foundation, the Group is sustaining mid-term growth by addressing attractive growth markets, securing structural growth and expanding through targeted mergers and acquisitions. A leading global technology and engineering Group, Oerlikon operates its business in two Segments - Surface Solutions and Manmade Fibers - and has a global footprint of around 11 000 employees at 182 locations in 37 countries. In 2019, Oerlikon generated CHF 2.6 billion in sales and invested more than CHF 120 million in R&D.
Disclaimer
OC Oerlikon Corporation AG, Pfaffikon together with its affiliates, hereinafter referred to as 'Oerlikon', has made great efforts to include accurate and up-to-date information in this document. However, Oerlikon makes no representation or warranties, expressed or implied, as to the truth, accuracy or completeness of the information provided in this document.
The contents of this document, including all statements made therein, are based on estimates, assumptions and other information currently available to the management of Oerlikon. This document contains certain statements related to the future business and financial performance or future events involving Oerlikon that may constitute forward-looking statements. The forward-looking statements contained herein could be substantially impacted by risks, influences and other factors, many of which are not foreseeable at present and/or are beyond Oerlikon's control, so that the actual results, including Oerlikon's financial results and operational results, may vary materially from and differ from those, expressly or implicitly, provided in the forward-looking statements, be they anticipated, expected or projected. Oerlikon does not give any assurance, representation or warranty, expressed or implied, that such forward-looking statements will be realized. Oerlikon is under no obligation to, and explicitly disclaims any obligation to, update or otherwise review its forward-looking statements, whether as a result of new information, future events or otherwise.
This document, including any and all information contained therein, is not intended as, and may not be construed as, an offer or solicitation by Oerlikon for the purchase or disposal of, trading or any transaction in any Oerlikon securities. Investors must not rely on this information for investment decisions and are solely responsible for forming their own investment decisions.
Contact:
Andreas Schwarzwalder
Tel: +41 58 360 96 22
OC OERLIKON CORPORATION AG 
