Operational EBITDA was CHF 98 million, a decrease of 7.3 per cent compared to CHF 106 million in Q3 2023. Operational EBITDA margin was at 16.9 per cent, registering a minor decrease of 8 basis points from 17.0 per cent. EBITDA stood at CHF 92 million, down by 3.1 per cent from CHF 95 million in Q3 2023. The EBITDA margin was 15.9 per cent, showing a slight improvement of 62 basis points from 15.3 per cent.

Group sales were down 5 per cent YoY at constant FX due to 2023 order postponements in polymer processing solutions. Surface Solutions delivered stable sales (-1 per cent at constant FX) despite sluggish market conditions, as per a press release by OC Oerlikon Corporation.

For the 9M period, sales were CHF 1,747 million (~$2,009 million), a decrease of 15.2 per cent from CHF 2,061 million in 9M 2023 and order intake was CHF 1,832 million, down by 3.8 per cent from CHF 1,905 million in the previous year.  The operational EBITDA was CHF 285 million, down 17.2 per cent compared to CHF 344 million in the previous year. Operational EBITDA margin was 16.3 per cent, a decrease of 38 basis points from 16.7 per cent in 9M 2023. EBITDA for this period stood at CHF 273 million, down by 14.5 per cent from CHF 319 million and EBITDA margin was 15.6 per cent, a slight increase of 13 basis points from 15.5 per cent in the previous period.

The surface solutions division of the company delivered stable sales (-1 per cent YoY) at constant exchange rates despite declining end markets. Resilience was supported by continued innovation and a robust performance in general industries, energy and aviation. Order intake decreased by 5 per cent YoY at constant exchange rates. This was driven by slowing markets in Q3, as indicated by contracting purchasing managers indices (PMIs) worldwide. Operational EBITDA margin improved 45 basis points to 18.0 per cent in Q3, supported by pricing, efficiency and innovation.

The polymer processing solutions division’s order intake continued to stabilise (-2 per cent) year-over-year, while sales at constant currency declined by 11 per cent, reflecting postponement of orders in 2023. The division continued to see positive momentum in small- and mid-sized filament orders. Sluggish industrial production, as indicated in PMIs, impacted the non-filament business, where Q3 orders have decreased to 2016 trough levels. This division achieved a robust operational EBITDA margin of 13.1 per cent despite lower sales volume. The margin was supported by proactive cost actions, counteracting operating leverage and limited pass-through of higher input costs to maintain volume.

The company, in its outlook for full year 2024, expects operational EBITDA margin of ~16 per cent (previously: 15.5-16.0 per cent) supported by continued strong execution and despite softening PMIs that impacted sales. Organic sales expected to decrease by high single-digit to low-teens percentage at constant FX (previously: high single-digit percentage decrease).