October 22, 2009

Pfäffikon, Switzerland: Oerlikon Reports Results for First Nine Months of 2009

For most segments of Oerlikon Group, business volumes largely stabilized in the third quarter of the year. A direct comparison of Q3 to Q2 2009 is showing first signs of recovery on segment level, although the decline in order intake, orders on hand and sales in the first nine month of 2009 was quite considerable compared to the same period of the prior year.

At CHF 2.3 billion, order intake for the Oerlikon Group's continued operations during Q1-Q3 2009 was down 35 percent year-on-year. During the first half of 2009, order intake fell 39 percent despite two major Solar contracts.

"The business climate is starting to brighten up," says Hans Ziegler, CEO of the Oerlikon Group and Delegate of the Board of Directors. According to Ziegler, "We are glad to see that Q3 volumes are pointing toward the beginning of a recovery for key business areas. However, top priority is still being given to reducing the company's debt, shoring up the balance sheet and implementing restructuring measures."

During the fourth quarter of the year, Oerlikon expects slightly rising volumes in most segments compared to the average of the first three quarters of 2009. At CHF 2.3 billion, order intake for the Oerlikon Group's continued operations during Q1-Q3 2009 was down 35 percent year-on-year. During the first half of 2009, order intake fell 39 percent despite two major Solar contracts. Orders on hand amounted to CHF 1.1 billion (-31 percent year-on-year). In a year-on-year comparison, Group sales fell 39 percent to CHF 2.2 billion during Q1-Q3 2009.

Due to the nature of the projects at Oerlikon Solar, which consist of a small number of large-volume orders, a quarter-on-quarter comparison of this segment is not appropriate. The segment posted a strong Q2 2009 thanks to two major contracts won in June 2009.

Business volume at Oerlikon Solar remained at around the previous year's level during Q1-Q3 2009. Order intake stood at CHF 503 million (-5 percent) and orders on hand amounted to CHF 328 million (-40 per cent). Sales reached CHF 432 million, a decline of 2 percent. Despite the difficult economic condition, Oerlikon Solar was able to win two major contracts in Q2 2009: one 120 megawatt (MW) first-time contract from Nano Solar Technologies Ltd., Russia, as well as a 30 MW follow-up contract from HelioSphera in Greece. Order intake in Q3 2009 did not include any major contracts.

The successful construction of end-to-end production facilities enabled Oerlikon Solar to further strengthen its position as leader in Q3 2009. In August, Tianwei and Oerlikon Solar announced the completion of one of China's largest production facilities for thin-film solar modules. With a total of ten customer production plants, Oerlikon Solar is the leading provider of thin-film solar systems and has the shortest production lead times. All in all the segment anticipates slightly declining volumes in 2009. Based on the current order intake and market trends a slight increase of order intake and flat sales development is expected for 2010.

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