Oerlikon Its Surface Solutions Business Into the Luxury Segment with Riri
Having successfully completed the acquisition of Riri, Oerlikon continues its efforts to become one of the leading companies in the field of luxury metal goods. The company has diversified its surface solutions business into the luxury segment and continues to diversify with Riri.
Confirming full-year guidance: sales, including Riri, of CHF 2.90-2.95 billion at constant exchange rates and operational EBITDA margin of 16.0-16.5%. Expecting positive impacts on margin from pricing measures and previously announced cost actions throughout 2023.
“We delivered a first-quarter performance in line with our expectations and are on track with our strategy execution,” said Michael Suess, Executive Chairman, Oerlikon. “We expect to see positive effects from pricing measures and previously announced cost actions throughout 2023 to strengthen margins.”
“With Riri, we diversified our surface solutions business into the luxury segment. We will continue to execute on our mid-term growth strategy, focusing on diversification, profitability and sustainability,” added Michael Suess.
Group sales improved to CHF 735 million, driven by Surface Solutions
Group orders decreased by 13.9% (9.7% FX adjusted) to CHF 681 million. Group sales improved by 5.4% to CHF 735 million, driven by Surface Solutions. At constant exchange rates, Group sales increased by 10.7%. Group operational first quarter EBITDA was CHF 116 million, or 15.8% of sales, representing a yearover-year decrease of 150 basis points (bps), attributed to mix effects and higher input costs. Q1 2022 operational EBITDA was CHF 120 million, or 17.3% of sales. First quarter 2023 operational EBIT was CHF 63 million, or 8.6% of sales (Q1 2022: CHF 66 million; 9.5%). Group first quarter EBITDA was CHF 114 million, or 15.5% of sales (Q1 2022: CHF 112 million, 16.1%), and EBIT was CHF 60 million, or 8.1% of sales (Q1 2022: CHF 57 million, 8.2%).
The division increased order intake by 1.8% (6.3% FX adjusted) to CHF 382 million and sales by 12.5% (17.5% FX adjusted), attributed to tooling, general industries, aerospace and energy. Operational EBITDA decreased by 3.4% to CHF 59 million, or 15.8% of sales, compared to CHF 61 million, or 18.4% of sales in Q1 2022, due to higher input costs and higher proportion of equipment and materials sales.
Margin was impacted by mix effects and higher input costs
The division saw the anticipated decrease in orders, driven mainly by filament demand in China. Order intake declined by 28.0% (24.1% FX adjusted) to CHF 298 million. Sales declined by 1% to CHF 366 million year-over-year. At constant exchange rates, sales increased by 4.6%, supported by deliveries from the strong order book in the previous years. Operational EBITDA decreased by 5.2% to CHF 55 million, or 15.1% of sales, compared to CHF 58 million, or 15.7% of sales, in Q1 2022. Margin was impacted by mix effects and higher input costs.