OC Oerlikon rises on plans to separate polymer processing biz
20/02/2024 08:35
** Shares in OC Oerlikon OERL.S rise around 5% to
six-month highs after the Swiss fibre and metal coating maker
said it was exploring options to separate its polymer processing
business
** The company plans to focus on its Surface Solutions in
the next three years, specifically aiming for regional growth in
the Americas and Asia
** "While a bit messy, we generally see the results and
further step to becoming a Surface Solutions pureplay as
positive," analysts at Baader Helvea say in a note
** The company said weak filament demand from China
affected its polymer business, with 2023 core earnings falling
13.4% due to a downturn in the division
** RBC analysts say that the divestment "marks a radical
step by management to stabilise the group", adding that they
expect a sale of the business once the end market recovered
(Reporting by Marleen Kaesebier, Louis Van Boxel-Woolf)
((Marleen.kaesebier@thomsonreuters.com))