August 6, 2019 / 5:54 AM / 19 days ago

UPDATE 1-Oerlikon lowers 2019 outlook due to weaker economy

(Adds further details, CEO quote)

Aug 6 (Reuters) - Swiss industrial group OC Oerlikon on Tuesday cut its 2019 guidance, citing growing geopolitical and market uncertainties, leading to weakness in its surface solutions business.

The company is now targeting orders and sales at 2.7 billion and 2.6 billion Swiss francs respectively, and the margin for earnings before interest, taxes, depreciation and amortisation (EBITDA) at 15.5%.

Oerlikon previously said order intake and sales would exceed 2.7 billion Swiss francs and the EBITDA margin would top 16%.

"Economic growth around the world is stalling, resulting in lower investments in equipment and industrial production. These developments have impacted most of our end markets, from automotive to tooling and general industries," chief executive Roland Fischer said.

The Swiss company's largest segment, surface solutions, whose products include coatings for automotive components and surfaces of electric car brake discs, is exposed both to the automotive market and China.

Suppliers to the automotive industry have struggled with declining car sales volumes and production in China, which lead to profit warnings related to auto production, including China's auto maker Geely and chemical giant BASF .

In the second quarter, Oerlikon reported order intake of 672 million francs, which was slightly below the last year's figure of 677 million.

$1 = 0.9743 Swiss francs Reporting by Bartosz Dabrowski; Editing by Subhranshu Sahu and Tomasz Janowski

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below