News Article
Strong Swiss Franc lets Oerlikon cut forecast
The company adjusts profit forecast and goodwill values to reflect changed market conditions.
In the course of preparing its report for the first half year 2008, Oerlikon Group has adjusted its profit forecast to reflect current market conditions, and has recognised impairments of certain assets.
The sharp decline in global textile business, the unfavourable development of foreign currency exchange rates, particularly of the US Dollar vs. the Swiss Franc, and the current weakness in the semiconductor market exert a significant influence on profits for the half year as well as the annual result for 2008. The company now expects the EBIT before impairments for 2008 to be one third lower than in the previous year.
In addition, as interest rates and economic volatility have risen significantly, Oerlikon will revalue its goodwill due to the changed market environment. The revaluation will have no cash effect. For Oerlikon Textile, Oerlikon Esec and Oerlikon Systems, a one time impairment of CHF 350 million in total is required.
The sharp decline in global textile business, the unfavourable development of foreign currency exchange rates, particularly of the US Dollar vs. the Swiss Franc, and the current weakness in the semiconductor market exert a significant influence on profits for the half year as well as the annual result for 2008. The company now expects the EBIT before impairments for 2008 to be one third lower than in the previous year.
In addition, as interest rates and economic volatility have risen significantly, Oerlikon will revalue its goodwill due to the changed market environment. The revaluation will have no cash effect. For Oerlikon Textile, Oerlikon Esec and Oerlikon Systems, a one time impairment of CHF 350 million in total is required.
