Oerlikon reported that sales of its Manmade Fibers Segment in FY2016 dropped 39.4% compared to the previous fiscal to CHF 481 million.
The segment continued to be influenced by the prevailing overcapacity in the filament equipment market. The oversupply and resulting negative investment trends strongly affected the segment’s performance in 2016. The order intake decreased by 21.3% to CHF 577 million.
The segment managed to deliver positive operating profitability as it reduced the cost base through restructuring. EBITDA was down 81.2% to CHF 16 million (including restructuring adjustments of CHF 3 million), or 3.3% of sales. EBIT was minus CHF 3 million (including restructuring adjustments of CHF 3 million), or minus 0.6% of sales.
In 2016, the segment further developed its business in texturing, BCF, polymer processing and staple fibers, as well as in regional markets outside of China, such as the U.S., India and Turkey. In the Indian textile market, it saw a first round of investments in 2016, and was able to secure approximately 80% of all orders for filament spinning lines.
To strengthen its staple fiber business, the segment acquired the staple fiber technology portfolio from Trützschler, making it a leader in the synthetic staple fiber market.