Strong Order Growth, Increased Guidance on Orders
Image source: Sulzer Ltd.
"Sulzer is well positioned to address some of the most pressing challenges society faces today such as the energy transition and water scarcity, turning them into compelling business opportunities.”
In the first nine months of 2022, order intake grew substantially (+10.0% organic) compared to the same period a year ago. Sulzer Q3 orders grew 8.0% currency-adjusted and 8.3% organic compared to Q3 2021, mainly driven by Energy and Industry in Flow Equipment and continued strong growth in Renewables and Water in Chemtech.
Order intake in Flow Equipment for the nine-month period was up 12.1% currency-adjusted (11.5% organic) and 8.6% in Q3 (both currency-adjusted and organic). All the three segments contributed to the growth. The Water segment, which today is the biggest business in the Flow Equipment division by orders, was up 6% currency-adjusted driven by the municipal wastewater market. The Industry and Energy segments performed very well, up 12.9% and 19.7% respectively (currency-adjusted). Profitable growth was driven by an increased tendering activity and continued order selectivity.
Nine-month orders in our Services business increased by 2.8% currency-adjusted (+2.6% organically), whereas Q3 saw an increase of 3.1% (currency-adjusted and organically). Order growth was impacted by Sulzer’s decision to exit the Russian market, resulting in negative order intake growth in the turbo services segment.
Outlook 2022
Despite global economic uncertainties and challenges, Sulzer expects its markets to remain robust. Sulzer increases its guidance for order intake to a 6-8% rise, up from 3-5% previously. Sales are now expected to be stable versus FY2021 (previously up 2-4% excluding the impact from the Russia exit) as lockdowns in China, shortages in some components and delay in projects are likely to shift some sales expected in 2022 to 2023. Sulzer confirms operational profitability at close to 10%.
The assets write-offs in Russia and Poland as shown in Sulzer’s midyear report will also have a significant negative impact on net profit for the full year 2022.
Source: Sulzer Ltd.
