OC Oerlikon sees stable 2025 sales, says polymer unit to operate separately (updated)
18/02/2025 06:42
(Adds graphic, sales by unit in paragraphs 3-5, polymer
processing separation in paragraphs 6-8)
By Amir Orusov
Feb 18 (Reuters) - Swiss fibre and metal coatings maker
OC Oerlikon OERL.S said on Tuesday it expected its 2025
organic sales to be stable or increase by a low single-digit
percentage in constant currency, citing soft end markets.
The company reported sales of 2.37 billion Swiss francs
($2.62 billion) for 2024, down from 2.69 billion a year earlier,
which translates to a 9.1% decrease in comparable terms.
Sales in Oerlikon's surface solutions business, which makes
metal coatings used by a wide range of industries, fell 0.1% in
constant currency, dragged by headwinds in tooling, automotive
and luxury markets, it said.
Vontobel analysts had said ahead of the results that the
performance in surface solutions was not expected to recover
until the latter part of 2025.
The polymer processing business, which supplies systems used
in making on fibres for the textile, automotive and chemical
industries, saw a 23% sales decline in constant currency, hit by
sluggish industrial production.
From the beginning of 2025, the polymer processing division,
excluding the hot runner systems unit, operates as a stand-alone
subsidiary, renamed to Barmag, Oerlikon said.
The group had in May 2024 said it expected to be ready to
split off the polymer processing division by the beginning of
this year, after first announcing the plan in February of last
year.
By separating the polymer processing business, Oerlikon aims
to become a pure-play surface solutions player making metal
coatings for the likes of NASA.
($1 = 0.9029 Swiss francs)
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Contribution of Oerlikons' Surface and Polymer processing
divisions to the group's total revenue and EBITDA shown in
percentage https://reut.rs/4gJexKW
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(Reporting by Amir Orusov in Gdansk; additional reporting by
Anastasiia Kozlova; Editing by Milla Nissi)
((amir.orusov@thomsonreuters.com))