The group expects an operating margin of 16% to 16.5% in 2023, down from 17.1% last year.

"Continued lockdowns and weaker textile demand have led to a difficult market environment for our filament business," Executive Chairman Michael Suess said, adding the firm was also bracing for lower sales in 2024.

For this year, it forecast sales of around 2.8 billion Swiss francs ($3.03 billion) at constant exchange rates, compared with 2.9 billion it reported for 2022, in line with its guidance.

OC Oerlikon also said it planned to cut 800 jobs from its polymer processing unit, equivalent to roughly 18.5% of the division's total workforce based on the 2022 annual report.

The polymer business, which supplies the textile, automotive and chemicals industries, saw a 26.8% decrease in operational earnings before interest, taxes, depreciation and amortisation (EBITDA) to 56 million francs in the fourth quarter, as costs rose due to inflation and elevated COVID-19 cases in China.

($1 = 0.9237 Swiss francs)

(Reporting by Johannes Toft Thyssen and Enrico Sciacovelli in Gdansk; Editing by Tom Hogue and Milla Nissi)