At constant exchange rates, the group’s sales were up 7.5% year-on-year to CHF 569 million. Operating EBITDA in the first quarter was CHF 88 million, or 15.6% of sales, up 420 basis points (basis points) over the same period last year. First-quarter operating EBIT was CHF 39 million, or 6.9% of sales (Q1 2020: CHF 9 million; 1.7%). The improved profitability was driven by benefits from structural cost reduction measures, positive operating share and improved business structure at Surface Solutions. Group EBITDA in the first quarter was CHF 88 million, or 15.4% of sales (Q1 2020: CHF 58 million, 11.0%) and EBIT was CHF 38 million, or 6.7% of sales (Q1 2020: CHF 6 million, 1.1 percent). The reconciliation between operating and unadjusted figures can be seen in the tables below, according to the Oerlikon press release.
The acquisition agreement for INglass, announced on April 23, 2021, marks a strategic step for Polymer Processing Solutions, formerly called Manmade Fibers. The move is in line with the division’s growth strategy to reposition and consolidate its position in the polymer processing market. This strategic acquisition will accelerate and strengthen the division’s organic initiatives to expand its polymer processing capabilities and products as it expands into new areas of growth. The acquisition is expected to be completed in the second quarter of 2021 pending normal merger control approvals. Upon completion, INglass will integrate with the existing polymer flow control business into new business unit flow solutions that will underpin growth for the division, Oerlikon said.
As vaccination evolves around the world, constrained demand is expected to increase consumption and, as a result, business growth. Assuming the COVID-19 pandemic will not cause further major disruptions and markets will continue to improve, Oerlikon expects 2021 sales of CHF 2.35 billion to 2.45 billion and an EBITDA operating margin of 15.5% to 16%. , 0%.
Order receipts of CHF 327 million were slightly lower than in the previous year. The book-to-book value ratio is above 1, reflecting the growing demand for equipment with a longer life cycle. The division posted sales of CHF 304 million, down 6.3% year-on-year on the back of comparatively strong aerospace performance in the first quarter of 2020 and lower production of longer cycle equipment, as reported in March. The division saw a rebound in sales in short cycle vehicles, tooling and other industries. At constant exchange rates, unit sales were down 4.7% year-on-year to CHF 309 million. Operating EBITDA was CHF 54 million, or 17.7 percent of sales, compared to CHF 41 million, or 12.5 percent of sales in the first quarter of 2020. The improved operating margins are attributable to the structural components of the 2020 spending measures and business mix improvements. Unadjusted EBITDA in the first quarter was CHF 53 million, or 17.5 percent of sales, compared to CHF 39 million, or 11.9 percent of sales in the previous year. Operating EBIT for the first quarter was CHF 15 million, or 4.8 percent of sales (Q1 2020: CHF -2 million, or -0.6 percent of sales), and unadjusted EBIT was CHF 14 million, or 4 .6 percent of sales (Q1 2020: According to Oerlikon, -5 million Swiss francs, or -1.4% of sales).
The division posted very strong year-on-year growth, thanks to strong performance in the first quarter and compared to the first quarter of 2020, which was affected by the pandemic. Ordering increased significantly by 119.0% to CHF 315 million, up from CHF 144 million in 2020. Sales were up 28.7% to CHF 263 million year-on-year, mainly driven by India and China. At constant exchange rates, sales rose 27.0% to CHF 260 million. Operating EBITDA increased year-over-year to CHF 33 million, or 12.4 percent of sales, from CHF 18 million, or 9.0 percent of sales in the first quarter of 2020, thanks to improved operating leverage. Unadjusted EBITDA was CHF 33 million, or 12.4 percent of sales (Q1 2020: CHF 18 million, 8.9 percent). Operating EBIT was CHF 24 million, or 9.3 percent of sales (Q1 2020: CHF 11 million, or 5.6 percent of sales). Unadjusted EBIT was CHF 24 million, or 9.3 percent of sales (Q1 2020: CHF 11 million, or 5.5 percent of sales).
Fiber2Fashion News Desk (GK)
Oerlikon, a leader in polymer processing and additive manufacturing. recorded a 34.6% increase in orders worldwide to CHF 643 million in the first quarter. Sales increased 7.2% to CHF 568 million, driven by increased demand for the glowing, automotive and tooling industries in China and India.