- Polymer Processing Solutions improved sequential order intake by 38% vs Q4 2023. Surface Solutions delivered stable organic sales in ongoing challenging end markets.
- Strong execution resulting in robust Group operational EBITDA margin of 15.7%. Surface Solutions saw an improvement of +122 basis points year-over-year. Polymer Processing Solutions achieved double-digit EBITDA margin despite cyclically low Q1 sales volume.
- 2024 guidance confirmed.
Group Key Figures as of March 31, 2024 (CHF million)1
| Q1 2024 | Q1 2023 | Year-Over-Year | |
| Order intake | 642 | 681 | -5.6%2 |
| Sales | 550 | 735 | -25.1%3 |
| Operational EBITDA | 86 | 121 | -28.8% |
| Operational EBITDA margin | 15.7% | 16.5% | -81 bps |
| EBITDA | 85 | 114 | -25.7% |
| EBITDA margin | 15.4% | 15.5% | -12 bps |
1 Due to rounding, some totals may not correspond with the sum of the separate figures. Operational EBITDA from prior year is restated for discontinued activities. For the reconciliation of operational and reported EBITDA figures, please see the earnings presentation. 2 Impact from M&A: +4.8%, foreign exchange (FX): -6.7%, organic: -3.8%; 3 Impact from M&A: +3.6%, FX: -5.2%, organic: -23.6%.
Michael Suess, Executive Chairman, Oerlikon, stated:
“We executed well and delivered robust results against soft industrial activity, particularly in Germany and China. Our strong focus on innovation, proactive cost management and rigorous pricing resulted in significantly improved margins in Surface Solutions and double-digit EBITDA margin in Polymer Processing Solutions. Our plans to separate Polymer Processing Solutions are on track.”
Surface Solutions Division
Surface Solutions achieved stable organic orders and sales, at constant exchange rates, supported by automotive and aerospace. The division saw cautious customer purchasing as reflected in the soft Purchase Management Index (PMI). While the Euro Area manufacturing PMI remained in contraction, the PMIs for China and the US were at neutral levels.
Operational EBITDA margin improved 122 basis points to 17.6%, supported by innovation, efficiency and pricing.
Key figures as of March 31, 2024 (CHF million)1
| Q1 2024 | Q1 2023 | Year-Over-Year | |
| Order intake | 391 | 382 | 2.3%2 |
| Sales (to third parties) | 371 | 369 | 0.6%3 |
| Operational EBITDA | 65 | 61 | 7.8% |
| Operational EBITDA margin | 17.6% | 16.3% | 122 bps |
| EBITDA | 64 | 58 | 10.3% |
| EBITDA margin | 17.1% | 15.6% | 155 bps |
1 Due to rounding, some totals may not correspond with the sum of the separate figures. Operational EBITDA from prior year is restated for discontinued activities. 2 Impact from M&A: +8.6%, FX: -6.9%, organic: +0.6%; 3 Impact from M&A: +7.2%, FX: -6.6%, organic: 0.0%.
Polymer Processing Solutions Division
Polymer Processing Solutions’ filament end market continued to be impacted by customers postponing investments. Organic order intake at constant exchange rates decreased by 9% year-over-year. Sequentially, the division improved order intake (Q3 2023: CHF 199 million; Q4 2023: CHF 182 million; Q1 2024: CHF 251 million). Q1 2024 sales of CHF 179 million reflect the transitorily lower order intake of the previous quarters. Furthermore, sales were impacted by delayed shipments due to tensions in the Red Sea, shifting sales into the remainder of 2024.
The division achieved a robust operational EBITDA margin of 10.5%, despite lower sales volume, FX and limited pass-through of higher input costs to maintain volume. The double-digit margin was supported by the previously announced proactive costs actions.
Key figures as of March 31, 2024 (CHF million)1
| Q1 2024 | Q1 2023 | Year-Over-Year | |
| Order intake | 251 | 298 | -15.8%2 |
| Sales (to third parties) | 179 | 366 | -51.0%3 |
| Operational EBITDA | 19 | 58 | -67.8% |
| Operational EBITDA margin | 10.5% | 16.0% | -546 bps |
| EBITDA | 19 | 55 | -65.8% |
| EBITDA margin | 10.5% | 15.1% | -453 bps |
1 Due to rounding, some totals may not correspond with the sum of the separate figures. Operational EBITDA from prior year is restated for discontinued activities. 2 Impact from M&A: 0.0%, FX: -6.4%, organic: -9.3%; 3 Impact from M&A: 0.0%, FX: -3.7%, organic: -47.4%.
Additional Information
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About Oerlikon
Oerlikon (SIX: OERL) is a global innovation powerhouse for surface engineering, polymer processing and additive manufacturing. The Group’s solutions and comprehensive services, together with its advanced materials, empower customers by improving and maximizing the performance, function, design and sustainability of customers’ products and manufacturing processes in key industries. Pioneering technology for decades, everything Oerlikon invents and does is guided by its passion to support customers’ goals and foster a sustainable world. Headquartered in Pfaeffikon, Switzerland, the Group operates its business in two Divisions – Surface Solutions and Polymer Processing Solutions. It has a global footprint of more than 12 600 employees at 207 locations in 38 countries and generated sales of CHF 2.7 billion in 2023.
Disclaimer
OC Oerlikon Corporation AG, Pfäffikon 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. Neither Oerlikon nor any of its directors, officers, employees or advisors, nor any other person connected or otherwise associated with Oerlikon, shall have any liability whatsoever for loss howsoever arising, directly or indirectly, from any use of this document.
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