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OC Oerlikon Corp AG (OCO)

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Wednesday 23 April, 2008

OC Oerlikon Corp AG

1st Quarter Results

OC Oerlikon Corp AG, Pfaeffikon
23 April 2008

Opposing tendencies at Oerlikon Solar and Oerlikon Textile mark the first
quarter



Volumes in the first quarter of 2008 - adjusted for conversion differences - are
slightly above previous year's level



•         Sales amount to CHF 1.17 billion (-2.9 per cent compared to Q1 2007)

•         Adjusted for conversion differences, sales rose by 2.6 per cent
compared to the same period of 2007

•         Order intake amounts to CHF 1.16 billion (-16.9 per cent)

•         Successful delivery of Solar plants furthers demand - first large
order for Oerlikon Solar from Mainland China

•         Overall market slowdown in the global textile market was stronger than
expected, with consequences for the entire group

•         Adjustments to production capacities were initiated in anticipation of
changed market requirements

•         Ambitious sales and result goals for 2008 only attainable subject to
improved market conditions





Key figures of Oerlikon Group as per 31.03.2008
In CHF billion                       Q1/2008          Q1/2007            change
Order intake                            1.16             1.39            -16.9%
Orders on hand                  1.74 / 1.52*           1.72**            -11.7%
Sales                                   1.17             1.20             -2.9%

* Shown without Oerlikon Drive Systems for comparison with Q1/2007
** No values for 2007 for Oerlikon Drive Systems



Pfaffikon SZ, 23 April 2008 - In the first quarter of 2008, Oerlikon just
managed to maintain the level of sales despite a clear slowdown in the market in
global textile business, a restrained semi conductor market accompanied by
unfavourable currency influences. Adjusted for conversion differences, the
group's sales showed some growth. 'Volatility of this magnitude, particularly in
the textile market, was not foreseeable', says CEO Dr. Uwe Kruger. In the
segments affected by the decreases, steps were already taken in the previous
year to adjust production capacities to changed conditions. 'Sales will continue
to grow in 2008. But the profit goals for 2008 can only be achieved if market
conditions improve', says CEO Kruger. In particular, Oerlikon Solar's
above-average sales increase which is to be expected in the second half of the
year will contribute to the positive development in the further course of the
business year. A further large order was signed yesterday - with a first
customer from Mainland China.


The sales of the Oerlikon Group showed a decrease in the first quarter of 2008
of -2.9 per cent to CHF 1.17 billion. The order intake amounting to CHF 1.16
billion was -16.9 per cent below that of the previous year. The orders on hand
reached a value of about CHF 1.74 billion.



The clear market slowdown in the global textile market also led to a reduction
in sales for Oerlikon Textile of -16.9 per cent. The cycle-related downswing in
the semi conductor market caused sales to diminish considerably in the Business
Unit Oerlikon Systems (Data Storage and Wafer) which is part of the Oerlikon
Coating segment. The continued good to very good growth in the other segments
and Business Units almost completely compensated for this development, whereby
negative currency tendencies had a dampening effect. Oerlikon Solar almost
doubled their sales to CHF 82.4 million. Oerlikon Drive Systems grew by 13.6 per
cent to CHF 307.2 million, Oerlikon Vacuum increased sales by 4.5 per cent to
CHF 121.1 million.



The results of the first quarter prompt the company to accelerate and to extend
the restructuring and portfolio measures where were already initiated. The
planned disinvestment of the Business Unit Oerlikon Optics is going according to
plan. 'We are consistently aligning the company to the market conditions and are
taking all the measures necessary to strengthen our position also in difficult
market situations', emphasises CEO Kruger. In addition, the company started
already last year to cushion the foreseeable developments in the textile market
with an adjustment of production capacities and personnel resources, for
instance with cutbacks at Oerlikon Textile Germany or at Group headquarters in
Pfaffikon. 'If the markets do not recover in the very near future, we shall
resolutely take further measures', says CEO Kruger. Future-orientated research
and development projects in the segments and across the group will certainly not
be stopped.



Outlook

Despite the slowdown in growth, Oerlikon remains optimistic for the medium- and
long-term course of business. Over the whole year, Oerlikon still expects a
further increase in sales. An increase in last year's results only seems
realistic with better macro-economic conditions and a revival of the textile
market plus more favourable exchange rates.


Development in the segments
Oerlikon Textile

In the first quarter, Oerlikon Textile achieved sales of CHF 468.4 million (-
16.9 per cent), an order intake of CHF 432.6 million (-38.9 per cent) and had
orders on hand of CHF 734.5 million (-24.6 per cent). The results confirmed the
surprisingly harsh downturn in the global textile market, in particular in the
staple fiber sector. Targeted subsidies by the State, particularly in China and
India, led to an exceptional boom in 2007 in this market segment with an
increase in sales of 26.6 per cent for Oerlikon Textile compared to the previous
year. In addition, delays in China in approving projects would indicate attempts
by the government to dampen business.



In this market situation, Oerlikon Textile's technologically leading position
becomes noticeably evident. The innovations presented at the end of 2007 at the
textile machine trade fair ITMA were well received by the market despite general
reluctance to invest, for instance the new POY platform WINGS or the Autoconer
AC5. There was even an increase in demand for BCF carpet yarn plants in the
Asian markets, in part due to the leading technology. Despite the general
weakness of the market, Oerlikon Textiles could maintain their market shares at
a high level. By the year-end, the segment expects a revival of the business.



Oerlikon Coating

The segment Oerlikon Coating did not achieve the previous year's results in the
first quarter. Turnover dropped from CHF 169.1 million to CHF 145.9 million
(-13.7 per cent), order intake from CHF 181.9 million to CHF 161.5 million
(-11.2 per cent), orders on hand from CHF 94.7 million to CHF 64.5 million
(-31.9 per cent). The reason for this is the Business Unit Systems (Wafer and
Data Storage) which experienced sales losses of almost 60 per cent due to the
weak trend in semi conductors and the unfavourable exchange rate of the USD to
the Swiss franc.



But the Balzers Coating Services business, which corresponds to about 85 per
cent of the segment's sales, achieved a sales growth of approx. 4 per cent.
Exchange rate influences could be strongly felt here, stable exchange rates
would have corresponded to a growth increase of 9 per cent. Growth was spurred
on by further market penetration with new processes such as the P3eTM- and
BALINIT-ALDURA technology plus the further regional expansion in particular in
China, but also in Scandinavia with the acquirement of the local coating
specialists, Suomen Plasmapinta Oy. In the second half of the year, this trend
will continue with the planned opening of further Coating Centers in Asia
(India, Korea, Japan, China) and South America.





Oerlikon Solar

The new segment Oerlikon Solar already showed its enormous growth potential in
the first quarter. Compared to the same period last year, sales increased from
CHF 43.2 million by over 90 per cent to CHF 82.4 million, just as expected.
Order intake amounted to  CHF 17.6 million, orders on hand to CHF 403.2 million.
The production line for the customer ersol Thin Film was successfully increased
to full capacity and the goals set together with the customer were well
exceeded. Together with Oerlikon service specialists, the Asian customer CMC
started production of the first thin film silicon modules, and the first
micromorph-tandem plant was delivered to Inventux. 'So in the first quarter
also, we proved we are capable of delivering turnkey solutions and of getting
production started in the shortest time possible', says Oerlikon CEO Kruger.
Oerlikon Solar is extremely optimistic about the further course of business in
2008. The development of the location in Singapore is going according to plan.
The high level of demand continues, and important market participants such as
energy companies, semi conductor manufacturers and consortia are all showing
increased interest. For the next quarters, the segment reckons with a further
massive increase in sales and orders. In the first quarter, no major contracts
were actually signed, but several large orders which require a great deal of
time for financial and contractual clarification due to their intense
complexity, are on the verge of being signed. These refer amongst others to
framework contracts for several plants in Europe and Asia. Yesterday, a first
large order from Mainland China  was signed. Internal resources and production
capacities have been organised to be able to accommodate the turnover goal of
CHF 700 million. The current order book already ensures approx. 70 per cent of
this goal.




Oerlikon Vacuum

The segment Segment Oerlikon Leybold Vacuum achieved a turnover growth of 4.5
per cent with CHF 121.1 million. The renewed high order intake was particularly
satisfying, increasing by 9.6 per cent to CHF 129.6 million. The good ratio of
order intake to sales (Book/Bill Ratio) plus the orders on hand which again
increased by 36 per cent to CHF 85.4 million show Oerlikon Leybold Vacuum's
excellent market position. The orders on hand grew for the successive fifth
quarter, whereby Oerlikon Leybold Vacuum could gain further market shares.



The excellent position in particular in the booming solar business was decisive
for the positive development - namely globally and for all processing steps in
the manufacture of solar cells resp. thin film solar modules. The processing
industry, too, for instance metatallurgy and kiln engineering, plus the field of
research and development showed positive growth, plus the coating market in
general. Asia and Europe were the regions with the greatest expansion. Oerlikon
Leybold Vacuum is optimistic about the development of business for the rest of
2008.



Oerlikon Drive Systems

Oerlikon Drive Systems continued its positive development in the first quarter
of 2008. Sales reached CHF 307.2 million - a plus of 13.6 per cent - order
intake amounted to CHF 323.5 million (+ 19.6 per cent). The two Business Units -
Oerlikon Graziano and Oerlikon Fairfield - contributed equally to this excellent
result.

For Oerlikon Fairfield, the integration into the Oerlikon Group is having a more
and more positive effect, in particular with regard to the worldwide expansion
of the business. Here, Oerlikon Fairfield can fall back on the locations and
resources of other segments. Substantial infrastructure projects in India and
China led to an increased demand for components in construction machines. The
transport sector, too, reported growing demand for the special transmission
components from Oerlikon Fairfield. For the first time, a Chinese railway
manufacturer - China CSR - ordered prototype components for locomotives which
are to be manufactured on site. In the energy market, Oerlikon Fairfield
benefited from rising energy prices which led to an increased number of orders
both in the sector of oil production and that of wind energy turbines. In the
latter particularly, the Business Unit could improve its position and approach
further customers. The agricultural market which is booming all over the world
had a positive effect on Oerlikon Graziano. The excellent relationships with key
customers such as CNH or John Deere meant that the segment participated in this
development as a system supplier in an above-average way. The demand in the
field of high performance cars and the requirements for construction machines -
this particularly in Asia - remain high.



The further course of business with regard to sales growth looks very optimistic
for Oerlikon Drive Systems. Increasing labour, material and logistics costs
require great effort as far as productivity and efficiency are concerned in
order to obtain the targeted profit margins.



Oerlikon Components

The segment Oerlikon Components, comprising the Business Units Oerlikon Space
and Oerlikon Esec, also shows an extremely satisfactory turnover development
with a plus of 25.2 per cent to CHF 55.1 million. Both Business Units
contributed to this development.

The order intake decreased by 9.6 per cent to CHF 89.4 million. Whilst the order
intake for Oerlikon Space remained practically unchanged, as was expected the
current reluctance to invest by our semi conductor customers made itself
noticeable at Oerlikon Esec. Starting in the second quarter, the Business Unit
expects an upswing in business due to a seasonal revival and new innovative
products such as the Wirebonder 3200 plus the completely newly developed Die
Attach Platform 2100.



The press information given here consists of information based on the situation
as it stands today. Unforeseeable risks and influences may possibly cause
deviations from these statements. The declared values may differ due to rounding
differences.

Due to the increasingly long-term nature of project business and the
market-related degree of fluctuation, Oerlikon will in future issue sales
figures semi-annually.



For further information, please contact:
Burkhard Bondel                                    Frank Heffter
Corporate Communications                           Corporate Investor Relations
Phone +41 58 360 96 05                             Phone +41 58 360 96 22
Fax +41 58 360 91 93                               Fax +41 58 360 91 93
[email protected]                                    [email protected]
www.oerlikon.com                                   www.oerlikon.com



Oerlikon (SWX: OERL) is one of the world's most successful high-tech industrial
groups specializing in machine and plant engineering. The company is a leader in
the field of industrial solutions and innovative technologies for textile
manufacture, thin-film solar and thin-film coating, drive, precision and vacuum
systems. With roots in Switzerland and a long tradition stretching back 100
years, Oerlikon is a global player with a workforce of more than 19,000 at 170
locations in 35 different countries. The company's sales amounted to CHF 5.6
billion and it ranks either first or second in the respective global markets. In
2007, approx. 5 per cent of the turnover was invested in research and
development (CHF 274 million).



Key figures as per 31.03.2008

Oerlikon Group


in CHF million                           Q1/2008          Q1/2007               change
Order intake                             1 154.8          1 338.9               -16.9%
Orders on hand                1 738.2 / 1 518.7*          1 719.3               -11.7%
Sales                                    1 168.9          1 203.8                -2.9%

* Shown without Oerlikon Drive Systems for comparison with Q1/2007



Oerlikon Textile
in CHF million                                   Q1/2008            Q1/2007                  change
Order intake                                       432.6              707.5                  -38.9%
Orders on hand                                     734.5              974.5                  -24.6%
Sales                                              468.4              563.7                  -16.9%

Oerlikon Coating
in CHF million                                   Q1/2008            Q1/2007                  change
Order intake                                       161.5              181.9                  -11.2%
Orders on hand                                      64.5               94.7                  -31.9%
Sales                                              145.9              169.1                  -13.7%

Oerlikon Solar
in CHF million                                   Q1/2008            Q1/2007                  change
Order intake                                        17.6               11.2                   57.1%
Orders on hand                                     403.2              364.4                   10.6%
Sales                                               82.4               43.2                   90.7%

Oerlikon Vacuum
in CHF million                                   Q1/2008            Q1/2007                  change
Order intake                                       129.6              118.3                    9.6%
Orders on hand                                      85.4               62.8                   36.0%
Sales                                              121.1              115.9                    4.5%

Oerlikon Drive Systems
in CHF million                                   Q1/2008            Q1/2007                  change
Order intake                                       323.5              270.4                   19.6%
Orders on hand                                     219.5               k.A.                    k.A.
Sales                                              307.2              270.4                   13.6%

Oerlikon Components
in CHF million                                   Q1/2008            Q1/2007                  change
Order intake                                        89.4               98.9                   -9.6%
Orders on hand                                     231.1              222.9                    3.7%
Sales                                               55.1               44.0                   25.2%



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                      This information is provided by RNS
            The company news service from the London Stock Exchange                                                                                        

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