Oerlikon generated a 15.6% EBITDA margin and sustained solid profitability even after absorbing the one-time integration costs and acquisition accounting effects from the Metco transaction.
In the third quarter of 2014, Oerlikon continued to record strong performance. The Group grew order intake by 18.7 per cent to CHF 845 million and sales by 25.8 per cent to CHF 877 million. Oerlikon generated a 15.6 per cent EBITDA margin and sustained solid profitability even after absorbing the one-time integration costs and acquisition accounting effects from the Metco transaction. At stable exchange rates, sales increased by 28.3 per cent to CHF 894 million compared to CHF 697 million in Q3 2013.
The Manmade Fibers Segment continued to perform at a best-in-class level. Similarly, the Surface Solutions Segment delivered solid performance, despite the ongoing integration activities, growing also organically and with a strong underlying profitability. The Drive Systems Segment grew both sales and order intake compared to the prior year. The Vacuum Segment´s business performance remained largely at the previous year´s level. Group EBITDA stood at CHF 137 million compared to CHF 119 million in the third quarter of 2013, which resulted in a strong EBITDA margin of 15.6 per cent (Q3 2013: 17 per cent). EBITDA and EBIT were both impacted by one-time integration costs as well as acquisition accounting effects from the Metco acquisition.
Oerlikon CEO Dr Brice Koch said: ¨We confirmed our ability to achieve strong performance despite a challenging market environment. The Metco integration is progressing well and confirms the assumptions underlying the rationale for the deal. In light of our progress and current performance, we confirm our guidance for 2014 and also see some upside on profitability.¨
Since closing the Metco transaction on June 2, 2014, the integration of the Metco business is on track. The management team in the newly formed Surface Solutions Segment is fully in place. All 11 major integration workstreams, involving over 390 key employees, are progressing on or even ahead of schedule. A virtual gathering took place with over 6000 employees globally to align the teams. At 50 Metco sites worldwide, rebranding has been completed, while financial, legal, IT, HSE (Health, Safety and Environment) and HR reporting systems are ready and operational. Additionally, coordinated R&D technology programs have been defined and are advancing. The underlying businesses are developing as planned for 2014, where many joint customer visits are underway, with positive feedback. Tens of major key customers have asked to evaluate and validate together the additional opportunities of the combined businesses going forward. Both cost and revenue synergies have been identified in detail for each Business Unit, and are being integrated into the normal business planning cycle. Current synergy estimates are in excess of the initial investment analysis, confirming the underlying rationale of the transaction. The Surface Solutions Segment Analysts day is planned to take place on November 6, 2014.
Group sales and order intake rose
The group sales in the third quarter were CHF 877 million, an increase of 25.8 per cent compared to the CHF 697 million recorded in Q3 2013. At stable exchange rates, sales grew by 28.3 per cent to CHF 894 million. At the Segment level, sales trends were mixed: sales more than doubled through organic and inorganic growth at the Surface Solutions Segment to reach CHF 312 million. In line with the anticipated market normalisation, sales at the Manmade Fibers Segment declined by 12.8 per cent to CHF 246 million. Drive Systems Segment recorded a 12.8 per cent growth to CHF 194 million, while the Vacuum Segment revenues were up 1 per cent to CHF 99 million and the Advanced Technologies Segment increased 18.2 per cen