Oerlikon Group reports full year and fourth quarter 2012 results.
-Oerlikon increased profitability to EBIT margin of 14.5 % -EBIT up by 32.4 % to CHF 421 million; EBIT margin at 14.5 %
-Strong margin improvement in Textile, Drive Systems and Coating Segments
-Sales up by 6.4 % to CHF 2 906 million -Net income up 71.9 % to CHF 385 million
-Oerlikon reports a net liquidity position of CHF 339 million; equity ratio of 45 %
-The Board of Directors proposes a 25 % increase in dividend to CHF 0.25 per share for FY 2012
Outlook for 2013: order intake and sales at the previous year’s level; underlying operational profitability to be around the previous year’s level, temporary impacted by the divestments in the Textile Segment
In the fiscal year 2012, the Oerlikon Group delivered strong operational performance during its strategic transformation and shaping of the portfolio. The company generated EBIT of CHF 421 million representing an EBIT margin of 14.5 % (excluding the one-time effect from the sale of the property in Arbon EBIT amounted to CHF 382 million or 13.2 %).
This profitability level set a new record in the company’s history and was driven by the strong performance of the Textile and Coating Segments and significant improvement in the Drive Systems Segment. Despite a challenging global economic environment, Oerlikon was able to increase sales from continuing operations by 6.4 % to CHF 2.9 billion. While securing high quality orders, Oerlikon’s order intake totaled CHF 2.8 billion, close to the same level as in the previous year (–2.6 %). The strong operational performance and the cash proceeds from divestments resulted in a positive liquidity position for the Oerlikon Group of CHF 339 million after a net debt position of CHF 86 million a year ago.
The continued strengthening of the company’s financial position is also reflected in the equity ratio, which increased from 35 % to 45 %. Net income increased by 71.9 % to CHF 385 million, representing earnings per share of CHF 1.18. Consequently, the Board of Directors will propose a dividend of CHF 0.25 per share, an increase of 25 % compared to fiscal year 2011, to the Annual General Meeting of Shareholders.
This is the second successive dividend recommendation. Oerlikon CEO Michael Buscher said: “2012 was a transformational year for Oerlikon. Due to strong underlying performance, we achieved a record EBIT margin and propose an increased dividend. In parallel we also successfully shaped our business portfolio and fully refinanced the company. At Group level we made significant strides in our effort to gain a Best-in-Class position against our peers.”
Solid sales growth and normalized order intake
For 2012, the Oerlikon Group reported an increase in sales in continuing operations of 6.4 % to CHF 2 906 million (2011: CHF 2 731 million). Textile achieved the highest sales growth rate, reporting an increase in sales of 21.3 % compared to the previous year, benefitting from ongoing demand for innovative products in the manmade fiber business.
