Oerlikon reports strong second quarter and first half results for 2017
August 7, 2017
Oerlikon Group, Pfäffikon, Switzerland, has announced results for its fiscal second quarter and first half 2017. According to the company’s report, the second quarter and first half of 2017 saw an increase in order intake and sales across the group, with stronger trade, robust demand and upturns in industrial and capital investments.
In Q2 2017, the group’s order intake increased year-on-year by 21.9 % to CHF 724 million. This brings the group’s first half order intake to CHF 1,436 million, a year-on-year increase of 21.6%. Q1 sales grew by 19.4 % to CHF 689 million, while sales for the half year came in at 10.9 % higher than the prior year, reaching CHF 1,297 million. In the first six months of 2017, the group reported that its service business contributed to 35.7% of total sales.
Oerlikon Surface Solutions and Additive Manufacturing
Oerlikon Surface Solutions, which supplies surface technologies designed to improve the performance and durability of precision components for automotive and aerospace application and tools for the metal and plastics processing industries, continued its growth path and saw a noticeable uptake in general industries and tooling-related orders, the group stated.
The segment saw its order intake increase by 10% from CHF 311 million in Q2 2016 to CHF 342 million for Q2 2017 and sales increase 7.9% from CHF 315 million in Q2 2016 to CHF 340 million for Q2 2017. Half year order intake was up to 12.5% to CHF 694 million, with sales growing by 10.3% to CHF 672 million.
In the second quarter, the Oerlikon Surface Solutions acquired Scoperta Inc., USA, which it says offered the company unique process technology and knowledge in rapidly designing and developing materials. Scoperta owns proprietary computational software, which allows for a rapid identification and development of new material solutions.
The company reported that it is also building a new surface solutions centre in Nagoya, Japan to serve a newly acquired customer in the Japanese automotive market and to provide the latest surface solutions technologies and services to the Japanese automotive industry.
During the Paris Air Show 2017, Oerlikon Surface Solutions signed a memorandum of understanding with GE Additive, with the aim of increasing Additive Manufacturing (3D Printing) industrialisation. The five-year agreement between Oerlikon and GE specifies the provision of additive machines and services by GE to Oerlikon, and states that Oerlikon will become a preferred AM component manufacturer and materials supplier to GE Additive and its affiliated companies.
Oerlikon Drive Systems
Oerlikon’s Drive Systems segment, which provides gear, drive and shifting solutions, reported an order intake of CHF 184 million for Q2 2017, up 16.5% from CHF 158 million in Q2 2016, and an overall half year order intake of CHF 365 million, up 15.9% from CHF 315 million in 2016. According to Oerlikon, Drive Systems’ positive result was largely due to repositioning efforts made by the segment, which won new customers and projects in the agriculture, construction, automotive and transportation markets.
The global automotive sector reportedly saw an increase in demand, particularly for high-performance vehicles, and a positive trend for agriculture was noted in Europe, Russia and India as a result of government subsidies and measures and a positive business outlook. A slight increase in activity and investments in the US energy market, particularly for shale oil and gas, was also observed during the quarter. Compared to the same period in the previous year, the Segment increased both orders and sales.
To reinforce its position in e-drives, the segment also presented new technologies such as its modular dedicated hybrid transmission systems based on its OGeco solution and is partnering with leading automotive brands on hybrid and electric transmissions projects for passenger cars and commercial vehicles.
Outlook
Dr Roland Fischer, Oerlikon Group CEO, stated, “We successfully delivered another quarter of strong performance and growth in all segments. We were able to master the challenges of the markets by clearly focusing on developing sales while improving our cost structure. As a result of our strategic actions, we captured many opportunities that arose from the pickup in our key end markets and increased orders and sales in all segments.”
“Our increased focus on the surface solutions business has borne fruit, and we have achieved higher year-on-year orders and sales,” he continued. “We strengthened our business offering through two technology acquisitions and investments in four service and coating centres, and made important progress in our Additive Manufacturing business. The repositioning of the drive systems business, new customer wins and development of new applications in areas such as e-mobility have opened up attractive long-term prospects for the Drive Systems Segment. The strong second quarter performance confirms that we are on the right track with our strategy. We are confident that going forward, we can further leverage our business model and competencies in surface solutions, advanced materials and materials processing.”
Oerlikon Group reported that its positive momentum in the global economy in the first half of 2017 is expected to persist in the second half of the year. Growth for the full year is projected for the advanced economies in Europe and the USA, as well as in Asian markets, particularly China and India. The company stated that it expects to deliver order intake and sales of around CHF 2.6 billion for the full fiscal year.
