#Spinning

2024-11-14

Oerlikon reports third quarter 2024 results, highlights strong execution in a challenging market landscape

In the third quarter of 2024, Oerlikon reported a stable operational Group EBITDA margin, despite challenging market conditions, thanks to a focus on pricing, cost management, and efficiency across both divisions. Group order intake saw a 4% year-over-year decline at constant FX, attributed to temporary market softness in Surface Solutions, while orders in Polymer Processing Solutions showed signs of stabilization.

Group sales decreased by 5% year-over-year at constant FX, influenced by 2023 order delays in Polymer Processing Solutions. Surface Solutions maintained stable sales with a slight decrease of 1% at constant FX, despite slower market activity.

The company has updated its 2024 guidance, now expecting an operational EBITDA margin of approximately 16% (previously 15.5%-16.0%), driven by ongoing strong execution. Organic sales are projected to decline by a high single-digit to low-teens percentage at constant FX, reflecting softening PMI levels that have impacted sales.

1 Due to rounding, some totals may not correspond with the sum of the separate figures. For the reconciliation of operational and reported EBITDA figures, please see earnings presentation. 2 Impact from M&A: +0.0%, foreign exchange (FX): -1.1%, organic: -4.0%. 3 Impact from M&A: +0.0%, FX: -1.8%, organic: -5.2%. 4 Impact from M&A: +1.7%, FX: -3.4%, organic: -2.2%. 5 Impact from M&A: +1.3%, FX: -3.0%, organic: -13.5% © 2024 Oerlikon

Michael Suess, Executive Chairman of Oerlikon, stated: “In the third quarter, we achieved robust profitability, driven by our strong focus on execution quality in challenging end markets. Surface Solutions’ resilience, supported by innovation and diversification started a decade ago, positions us strongly to benefit when markets recover. Polymer Processing Solutions still faces challenges in its end markets, yet succeeded in delivering a strong 13% EBITDA margin, which was well above the levels during the last downcycle. Our pure play strategy implementation is on track. We have initiated actions to merge our headquarters organization with that of Surface Solutions, and these changes will be implemented from January 2025 onwards. In addition, our manmade fibers business will be set-up as an independent organization ready for separation. As we evaluate different options, our goal remains to create maximum value for all stakeholders.”

Separation of Oerlikon’s Manmade Fibers Business on Track

As announced in February 2024, the planned separation of Oerlikon’s manmade fibers business over 12-36 months and the implementation of Oerlikon’s pure play strategy focusing on surface solutions are well on track. As a next step, the manmade fibers business will be set-up as a largely independent organization ready for the planned separation.

In preparation for the separation, Oerlikon is reducing its support functions, as it will no longer require all of the Group’s current resources. Accordingly, streamlining has been initiated, merging headquarters’ functions with those from Surface Solutions. Oerlikon has introduced a retention plan to ensure business continuity and retain talents. The streamlining will result in an agile and lean organization, while allowing Oerlikon to adjust its costs base to reflect the future revenue of the company.

Polymer Processing Solutions Division with stabilizing orders and robust profitability

Polymer Processing Solutions order intake continued to stabilize (-2%) year-over-year, while sales at constant currency declined by 11%, reflecting postponement of orders in 2023. The division continued to see positive momentum in small- and mid-sized filament orders. Sluggish industrial production, as indicated in PMIs, impacted the non-filament business, where Q3 orders have decreased to 2016 trough levels.

The division achieved a robust operational EBITDA margin of 13.1% despite lower sales volume. The margin was supported by proactive cost actions, counteracting operating leverage and limited pass-through of higher input costs to maintain volume.

Key figures as of September 30, 2024 (CHF million)1

Due to rounding, some totals may not correspond with the sum of the separate figures. 2 Impact from M&A: +0.0%, FX: 0.0%, organic: -2.3%. 3 Impact from M&A: 0.0%, FX: -1.5%, organic: -10.5%. 4 Impact from M&A: +0.0%, FX: -3.2%, organic: -3.6%. 5 Impact from M&A: +0.0%, FX: -2.4%, organic: -30.2% © 2024 Oerlikon

Oerlikon Manmade Fibers Solutions hosted successful Technology Day 2025 in India

Oerlikon Manmade Fibers Solutions recently hosted its highly anticipated Innovation and Technology Day at the Deltin Hotel in Daman by end of January 2025. The event attracted over 300 participants, including industry experts, partners, and stakeholders, who gathered to explore the latest advancements and trends in the manmade fibers industry in India.

Rieter Annual General Meeting 2026: Shareholders approve all board proposals

At the Annual General Meeting of Rieter Holding Ltd. held on April 16, 2026, 342 shareholders representing 64.0% of the share capital approved all motions proposed by the Board of Directors. The shareholders adopted the Annual Report as well as the Financial Statements and Consolidated Financial Statements for 2025. They also granted discharge to the members of the Board of Directors and the Group Executive Committee for their activities in the reporting year. In an advisory vote, the 2025 Report on Non-Financial Matters was also approved.

SAHM Winding Solutions and Vandewiele Automation present integrated automation solution for winding processes

For the first time at the Techtextil trade fair in Frankfurt am Main, Germany (21 - 26 April), SAHM Winding Solutions (Hallo 12.0. / Booth 95) and Vandewiele Automation will be showcasing their combined automation expertise for industrial winding processes. Under the motto “Combining Automation. Maximizing Flow”, the two companies will demonstrate how automated package handling and robot-assisted yarn knotting can be integrated into a continuous production flow.

Italian Textile Machinery heads to Geneva for Index 2026

An important delegation of Italian companies will exhibit at the upcoming INDEX 2026, the world’s leading event for the nonwovens sector, taking place from May 19 to 22 in Geneva (Switzerland). Numerous Italian exhibitors will be present within the Italy Pavilion, organized by the Italian Trade Agency (ICE) and ACIMIT, an exhibition area of over 140 square meters dedicated to the latest innovations proposed by the Italian industry.

Aditya Birla Group showcases integrated technical textile capabilities at Techtextil 2026

As global industries rethink supply chains and accelerate the adoption of advanced materials, the Aditya Birla Group, a US$67‑billion global conglomerate, headquartered in Mumbai, India, showcased the full strength of its technical textiles portfolio at Techtextil 2026 in Frankfurt today. The Group’s presence underscored India’s transformation into a hub for high-value, performance-driven textile solutions within the global ecosystem.