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Oerlikon swings to 2010 profit, upbeat on outlook

Published 03/23/2011, 05:56 AM
Updated 03/23/2011, 05:57 AM

* Oerlikon posts 2010 profit of 5 million Sfr

* Posted loss of 592 million Sfr in 2009

* Sees sales rising up to 10 percent in 2011

* Shares up 5.9 pct, one of biggest gainers in Switzerland

ZURICH, March 23 (Reuters) - Oerlikon, the struggling Swiss technology group, swung to a profit in 2010 and set an upbeat tone for 2011, boosting its shares more than 5 percent.

Oerlikon, controlled by Russian billionaire Viktor Vekselberg, sees sales to rising up to 10 percent this year thanks to "healthy markets" for its textile and coating units, while it expects it solar unit to breakeven.

Oerlikon, which makes a range of products from coatings used in Formula One racing cars to machines used to make solar cells, posted a surprise net profit of 5 million Swiss francs in 2010.

Last year, the group clinched a deal to restructure its balance sheet, which provided a lifeline for the indebted company.

At 0930 GMT, Oerlikon shares were trading 5.4 percent stronger, making it one of the biggest gainers in Switzerland.

"Overall a solid result. Oerlikon returned to profitability faster than expected," said Kepler Capital Markets analyst Christoph Ladner. "Solar could become a valuable unit again, with ongoing discussions about nuclear," he said.

The nuclear crisis in Japan has revived interest in renewable sources of energy and companies such as Oerlikon could benefit if investment in solar energy equipment picks up.

Many countries are starting to look at how to lower carbon emissions in the fight against climate change and still meet energy demands as the future of nuclear power starts to look more uncertain. (Reporting by Katie Reid. Editing by Jane Merriman)

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