Oerlikon continues solid profitability in challenging environmen

First quarter results 2013

Oerlikon continues solid profitability in challenging environment

  *Order intake increased by 1 % year-over-year to CHF 763 million;
    book-to-bill ratio above 1
  *Sales close to prior year level at CHF 723 million
  *EBIT margin at 11.8 % (Q1 2012: 13.1 % on a like-for-like basis)
  *Strong performance in Textile and Coating Segments, improvements in the
    Vacuum Segment, Drive Systems and Advanced Technologies Segments impacted
    by challenging environment
  *Strong sales growth in Europe (+15 %) and China (+9 %)
  *ROCE at 17.0 %
  *Outlook for full year 2013 confirmed

Key figures Oerlikon Group as of March 31, 2013 (in CHF million)

                                        Q1 20131    Q1 20121    â??    %
Order intake                            763         756         +7     +1 %
Order backlog                           894         965         -71    -7 %
Sales                                   723         737         -14    -2 %
EBIT                                    85          136         -51    -38 %
EBIT margin                             11.8 %      18.4 %      -      -
EBIT (excl. one-time effect)2           85          97          -12    -12 %
EBIT margin (excl. one-time effect)2    11.8 %      13.1 %      -      -
ROCE3                                   17.0 %      17.6 %      -      -

1 Continuing operations (Q1 2012 restated); 2 Sale of Arbon property; 3 As

Pfäffikon SZ, Switzerland - May 7, 2013 - In the first quarter of 2013, the
Oerlikon Group delivered solid profitability despite a challenging economic
environment in major market segments and regions. EBIT amounted to CHF 85
million reflecting an EBIT margin of 11.8 % (Q1 2012: CHF 97 million with a
margin of 13.1 % on a like-for-like basis). Business volume remained strong
with order intake and sales at levels comparable to the prior year. Main
drivers of these results were the Segments Textile and Coating, whose strong
performance offset softness in the Drive Systems and Advanced Technologies
Segments. Regionally, Europe and Asia showed the strongest growth rates.
Oerlikon CEO/CFO Jürg Fedier commented: "Despite the challenging macroeconomic
environment, we maintained earnings - largely due to our efforts to
variabilize the cost base. Our Q1 results are fully in line with our

Textile order intake increased by 10 %

Order intake for the Group grew by 1 % to CHF 763 million compared to the
first quarter of 2012 (Q1 2012: CHF 756 million). The Textile Segment, its
sole focus now on manmade fibers, significantly increased bookings by 10 % to
CHF 290 million, representing the strongest quarterly order intake for the
manmade fibers business. The Advanced Technologies Segment also recorded a
boost in bookings. Order backlog for the Group at the end of the first quarter
2013 decreased by 7 % to CHF 894 million (Q1 2012: CHF 965 million).

Sales close to previous year level

The Group reported first quarter 2013 sales close to the prior year's level at
CHF 723 million (Q1 2012: CHF 737 million, -2 %). The Textile Segment
contributed significantly to this result with a 13 % increase which offset
declines in other businesses, notably in the Drive Systems Segment. Drive
Systems' top line was down 16 % due to lower demand in North America's
fracturing market, a function of significant weakness in natural gas prices
and reduced activity in the infrastructure and construction sectors (heavy
duty off-highway equipment). Advanced Technologies Segment was down 38 % due
to continued softness in the semiconductor market. The Coating Segment was
close to the prior year's level (-2 %). Vacuum Segment (-4 % year-over-year)
saw first signs of recovery quarter-over-quarter.

Asia with strong order intake, Europe with strong sales growth

Order intake in Asia grew 25 %. Order intake in Europe was stable compared to
the previous year. Orders from North America were down about 25 %. In terms of
sales, Europe posted the strongest regional growth across the Group with an
increase of 15 % in the first quarter, primarily driven by the Textile manmade
fibers business, which more than doubled due to strong sales in Turkey. Asia
also contributed with 3 % growth; sales in China grew by 9 %. Sales in North
America declined by 22 %, and sales in other regions showed softness. Asia now
accounts for 44 % of Group sales (Q1 2012: 42 %), Europe for 36 % (Q1 2012: 31
%), North America for 15 % (Q1 2012: 19 %) and Other Regions for 5 % (Q1 2012:
8 %).

Sustained profitability

First quarter EBIT was CHF 85 million reflecting a margin of 11.8 % (Q1 2012:
CHF 136 million, including the sale of the Arbon property; on a like-for-like
basis Q1 2012 EBIT was CHF 97 million with a margin of 13.1 %). The strongest
contribution in Q1 2013 came from the Textile Segment, which reported an EBIT
increase of nearly 50 % on a like-for-like basis, with an EBIT margin of 15.8
% (Q1 2012: 12.2 %). Also Coating continued to be highly profitable with a
margin of 20.0 % (Q1 2012: 21.3 %). These results allowed the Group to offset
weak performance in the Drive Systems Segment, with a margin of 1.8 % (Q1
2012: 8.5 %). The Vacuum Segment showed a margin of 11.3 %, lower than in Q1
2012 (14.1 %), but substantially higher than in the second half of 2012 as
performance improves.

The solid Q1 2013 performance resulted in a ROCE of 17.0 % (Q1 2012: 17.6 %)
for the Oerlikon Group compared to a FY 2012 ROCE of 19.7 %. The slight
decline was predominantly attributable to the one-time effect from the Arbon
property sale in the first quarter 2012. Textile and Coating continue to
operate at Best-in-Class levels. "With the continued execution of our
unchanged strategy focusing on underlying operational performance, the
Oerlikon team maintained sustainable value creation and further invested in
R&D, product development and regional expansion", CEO/CFO Jürg Fedier said.

Outlook 2013

Based on the first quarter results Oerlikon confirms its outlook for 2013.
Assuming successful closure of the divestment of the Natural Fibers and
Textile Components Business Units, expected in Q2 2013, and stable exchange
rates, the Group forecasts

  *Order intake and sales around the previous year's level
  *Underlying operational profitability to be around the previous year's
    level, temporarily impacted by the divestments in the Textile Segment.

Segment overview

Textile Segment

Textile Segment key figures as of March 31, 2013 (in CHF million)

                                        Q1 20131    Q1 20121    â??    %
Order intake                            290         264         +26    +10 %
Order backlog                           600         651         -51    -8 %
Sales (to third parties)                307         272         +35    +13 %
EBIT                                    49          72          -23    -32 %
EBIT margin                             15.8 %      26.6 %      -      -
EBIT (excl. one-time effect)2           49          33          +16    +48 %
EBIT margin (excl. one-time effect)2    15.8 %      12.2 %      -      -

1 Continuing operations (Q1 2012 restated); 2 Sale of Arbon property

Textile Segment (continuing operations) performance in the first quarter of
2013 continued to show strength and delivered an all-time high in terms of
sales, order intake and operating profitability. In the first quarter of 2013,
the Textile Segment reported sales growth of 13 % compared to the same period
last year, reaching CHF 307 million. The Asian markets dominated Q1 2013
sales, but US and European markets improved significantly, due to the BCF
technology for production of carpet yarn (bulked continuous filament). Order
intake increased by 10 % year-over-year to CHF 290 million, driven mainly by
continued high orders from China. The order book provides substantial
visibility into fiscal year 2014 and first orders for fiscal year 2015 have
already been received.

Continued focus on operational excellence initiatives, sales development with
increasing volume and a favorable product mix led to a significant increase in
profitability on a like-for-like basis. The EBIT margin improved from 12.2 %
in Q1 2012 to 15.8 % in Q1 2013 (including the one-time effect of the Arbon
property sale in March 2012, the reported EBIT margin in Q1 2012 was at 26.6

The divestment process of the Natural Fibers and Textile Components Business
Units is progressing and major project milestones were completed in Q1 2013.
Closing is expected in Q2 2013.

Drive Systems Segment

Drive Systems Segment key figures as of March 31, 2013 (in CHF million)

                               Q1 2013       Q1 2012       â??      %
Order intake                   203           231           -28      -12 %
Order backlog                  152           211           -59      -28 %
Sales (to third parties)       188           224           -36      -16 %
EBIT                           3             19            -16      -84 %
EBIT margin                    1.8 %         8.5 %         -        -

Drive Systems Segment performance was impacted by a weakness in the Segment's
key regions and markets. As a result, both sales and order intake in Q1 2013
declined compared to the prior year period: sales declined by 16 % to CHF 188
million, order intake was down 12 % to CHF 203 million. EBIT reached CHF 3
million representing an EBIT margin of 1.8 % from 8.5 % in Q1 2012.

The decline in business was mainly attributable to the Segment's operations in
North America. Lower demand for equipment used in North America's energy
sectors including the oil and gas hydraulic-fracturing, due to natural gas
price weakness, and softness in demand from the coal mining sector where the
major factors. Key customers in the US who rely on export demand of heavy duty
off-highway equipment continue to face weak markets in China and elsewhere as
demand in the infrastructure and construction sector remains weak. The
softening of commodity prices and increased inventory of machinery lowered
demand in China for mining and off-highway equipment which affected local
demand and order pattern of customers in the US. The agricultural equipment
market and the European business were more resilient in the first quarter of

The low level of profitability was due mainly to lower sales in the most
profitable region and an unfavorable product mix. The Segment implemented a
series of mitigation actions to cut costs and accelerate sales growth in order
to improve the topline and profitability for the remainder of the year.
Actions include a significant headcount reduction in the US, temporary plant
shutdowns and increased focus on operational excellence projects. Despite the
lack of near-term visibility, the sequential increase of order intake and the
potential for pick-up of customer schedules in Europe and India in the latter
part of the year accompanied by the results from the mitigation actions are
expected to support a recovery of profitability.

Vacuum Segment

Vacuum Segment key figures as of March 31, 2013 (in CHF million)

                               Q1 2013       Q1 2012       â??      %
Order intake                   105           103           +2       +2 %
Order backlog                  85            80            +5       +6 %
Sales (to third parties)       94            98            -4       -4 %
EBIT                           11            14            -3       -21 %
EBIT margin                    11.3 %        14.1 %        -        -

The Vacuum Segment reported an order intake increase of 2 % to CHF 105 million
and an order backlog increase of 6 % to CHF 85 million. Sales amounted to CHF
94 million compared to CHF 98 million in Q1 2012, which was the strongest
quarter in 2012. EBIT amounted to CHF 11 million (Q1 2012: CHF 14 million) and
the EBIT margin was 11.3 % (Q1 2012: 14.1 %). Quarter-over-quarter, all key
financials improved.

Regionally, sales were driven by a notable improvement in China and a large
order from an East Asian customer, which offset slight declines in Europe and
North America. The early recovery was driven by increasing demand in the
process industry and the coating business. Substantial orders were received in
the US for the Segment's steel degassing solution, for lighting production in
Asia and in the glass and optical coatings markets, due to increasing demand
for touch panels and smart phones.

The Segment continued implementation of operational excellence initiatives,
regional expansion and the strategic alignment of the sales force. Progress on
the new logistics center in Cologne, Germany, is on schedule and will increase
the competitiveness of the German production site once in operation. The
continued shift of production to Tianjin, China, will result in further cost
advantages. A subsidiary in Brazil to serve process industry, coating, R&D and
analytics customers in South American markets was established in Q1 2013. The
Segment strengthened and aligned its sales team to boost business in Asia and
the Americas.

Coating Segment

Coating Segment key figures as of March 31, 2013 (in CHF million)

                               Q1 2013       Q1 2012       â??       %
Order intake                   124           127           -3        -2 %
Order backlog                  -             -             -         -
Sales (to third parties)       124           127           -3        -2 %
EBIT                           25            27            -2        -7 %
EBIT margin                    20.0 %        21.3 %        -         -

Despite a challenging environment in its main markets such as the automotive
industry, the Coating Segment delivered strong performance and reported sales
and order intake of CHF 124 million in the first quarter of 2013, a slight
decline of 2 % compared to the same period last year. Structural growth in the
area of coated engine parts, such as piston pins to reduce fuel consumption
and friction, mitigated the general downturn in the automotive industry. The
Segment expanded into new applications in the precision components market and
introduced innovations for the general tooling market. Regionally, China began
to recover and posted sales growth of 10 %. EBIT reached CHF 25 million, which
translates into an EBIT margin of 20.0 %.

In line with its global growth strategy, the Segment successfully expanded its
value chain by acquiring the "rox" regrinding process from the Austrian
company TCM International in January 2013. The regrinding service will be
integrated in the existing service offer and allow Coating to provide a
one-stop-shop solution worldwide, predominantly in Asia. The recently
introduced S3pTM technology for extremely smooth coatings in tool applications
was successfully qualified with first customers. The expansion of the global
footprint is ongoing; the latest example is the opening of the 8th coating
center in India, in Chandigarh (Punjab area). The Segment operates 90 coating
centers worldwide, of which one third are located in Asia.

Advanced Technologies Segment

Advanced Technologies Segment key figures as of March 31, 2013 (in CHF

                               Q1 2013      Q1 2012      â??      %
Order intake                   41           31           +10      +32 %
Order backlog                  57           23           +34      >100 %
Sales (to third parties)       10           16           -6       -38 %
EBIT                           -6           -2           -4       >-100 %
EBIT margin                    n/a          n/a          -        -

The Advanced Technologies Segment reported record order intake in the amount
of CHF 41 million, up 32 % on the previous year's level. Order backlog also
reached a record level of CHF 57 million as of end March 2013. Conversion into
sales, however, was behind expectations as projects in the semiconductor and
advanced nanotechnology areas were delayed. Sales amounted to CHF 10 million,
down 38 %. Lower sales volume and continued investment in the development of
new technologies resulted in a negative EBIT of CHF 6 million (Q1 2012: CHF -2

The Segment's equipment offers in advanced nanotechnology benefits from the
increasing demand for tablet computers and smart phones. As such, the Advanced
Technologies Segment reported increased orders in China. The Hexagon system
passed significant technical qualification milestones and market acceptance
has been accelerated. Customers in the semiconductor industry continue to face
low tool utilization, but the market is expected to recover from this slowdown
in the second half of 2013, indicating a back-end loaded sales pattern for

About Oerlikon:

Oerlikon (SIX: OERL) is a leading high-tech industrial group specializing in
machine and plant engineering. The Company is a provider of innovative
industrial solutions and cutting-edge technologies for textile manufacturing,
drive, vacuum, coating, and advanced nanotechnology. A Swiss company with a
tradition going back over 100 years, Oerlikon is a global player with around
12 700 employees at around 160 locations in 34 countries and sales of CHF 2.9
billion in 2012. The Company invested in 2012 CHF 106 million in R&D, with
over 1 000 specialists working on future products and services. In most areas,
the operative businesses rank either first or second in their respective
global markets.

Additional information

Oerlikon will present its results in German during its media conference call
today starting at 10:00 a.m. CET. To participate, please dial the following
numbers a few minutes before the start:

Switzerland +41 43 547 8001

Germany +49 69 2222 34066

UK +44 20 3450 9571

USA +1 646 254 3371

Confirmation Code: 4212102

The accompanying presentation can be viewed in parallel by opening the
following link http://webmeeting.adobeconnect.com/e4212102. Please sign in as
a guest.

During its analysts' conference call beginning at 2:00 p.m. CET Oerlikon will
present its results in English. To participate, please dial the following
numbers a few minutes before the start:

Switzerland +41 43 547 8001

Germany +49 69 2999 3285

UK +44 20 3450 9571

USA +1 646 254 3373

Confirmation Code: 6411954

The accompanying presentation can be viewed in parallel by opening the
following link http://webmeeting.adobeconnect.com/e6411954. Please sign in as
a guest.

Please find the media release including a full set of tables at
www.oerlikon.com/pressreleases and www.oerlikon.com/ir

For further information please contact:

Burkhard Boendel                               Andreas Schwarzwälder

Head of Group Communications & IR              Head of Investor Relations

T +41 58 360 96 02                             T +41 58 360 96 22

F +41 58 360 98 02                             F +41 58 360 98 22

pr@oerlikon.com                                ir@oerlikon.com


OC Oerlikon Corporation AG, Pfäffikon (together with its affiliates
hereinafter referred to as "Oerlikon") has made great efforts to include
accurate and up-to-date information in this document. However, Oerlikon makes
no representation or warranties, expressed or implied, as to the truth,
accuracy or completeness of the information provided in this document and
Oerlikon disclaims any liability whatsoever for the use of it.

This document (including all statements made therein) is based on estimates,
assumptions and other information currently available to the management of
Oerlikon. This document contains certain statements related to the future
business and financial performance or future events involving Oerlikon that
may constitute forward-looking statements. The forward-looking statements
contained herein could be substantially impacted by risks, influences and
other factors (many of which are not foreseeable at present and/or are beyond
Oerlikon`s control), so that actual results, including Oerlikon's financial
results and results of operation, may vary materially from and be worse than
those (expressly or implicitly) anticipated, expected or projected in the
forward-looking statements. There can be no assurance and no representation or
warranty, express or implied, is given that such forward-looking statements
will be realized. Oerlikon is under no obligation to (and expressly disclaims
any obligation to) update or otherwise review its forward-looking statements,
whether as a result of new information, future events or otherwise.

This document, including any and all information contained therein, is not
intended as, and may not be construed as, an offer or solicitation by Oerlikon
for the purchase or disposal, trading or any transaction in any Oerlikon
securities. Investors must not rely on this information for investment
decisions and are solely responsible for forming their own investment

Media release (pdf)
Key figures (pdf)

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