Higher Sales And Earnings During The First Half of 2007
In the first half of 2007, Sulzer achieved strong growth and substantially higher results. Order intake, sales, operating income (EBIT), and net income were well above the previous year’s results.
All key markets and regions remained in a positive condition. The outlook for the full year is encouraging, with strong gains expected in order intake and sales. In 2007, results are anticipated to be above those of the previous year due to operating improvements and volume leverage.
For the first half of this year, order intake grew 28.9% compared with the first half of 2006 (adjusted1 24.6%). Sales rose significantly by 23.7% (adjusted1 18.6%) to CHF 1 653.7 million. The order backlog mounted to almost CHF 2 billion. Operating income (EBIT) of the divisions increased by 45.9% to CHF 188.3 million. This figure corresponds to a return on sales of 11.4%. All four divisions significantly improved profitability. Overall net income attributable to shareholders grew to CHF 131.8 million from CHF 104.3 million (+ 26.4%). Cash generation from operating activities was CHF 11.4 million. It was significantly influenced by an increase of net working capital triggered by the growth, as well as by higher tax payments due to the increased profit. The share buyback program reduced net liquidity by about CHF 122 million in the first half of 2007.
