Order Intake Increased to CHF 3.3 Billion


Sulzer reports a high order intake of CHF 3 330.9 million for the first nine months of 2008. This represents an adjusted increase of 13.1% and a nominal growth of 4.8% compared with the same period in the previous year. The order intake increase was driven by Sulzer Pumps, which achieved strong double-digit growth in the first nine months of 2008.

The outlook for the full year 2008 remains positive, despite the current global economic environment. The currency translation impact will remain significant.

In the first nine months of 2008, the increasing uncertainties in the general financial and economic environment have not yet affected Sulzer significantly. The activity level in most of Sulzer’s markets remained positive, particularly in the oil and gas (upstream) and power generation markets. The hydrocarbon processing industry (oil and gas, downstream) remained generally stable at high levels, with signs of decreasing future project activity. The aviation segment showed some recent weakening in North America, whereas the pulp and paper segment remained soft. The automotive market displayed a high demand for Sulzer’s innovative applications.

Significant growth in the emerging regions continued, in particular Asia, the Middle East, Africa, and South America. Europe was stable, while North America began to show indications of a reduction in strength.

All major currencies have weakened against the Swiss franc resulting in a negative translation effect on the nominal growth rates. The adjusted figures mainly represent the growth in local currencies, while acquisitions had only a negligible impact.

Order intake by division

Sulzer Pumps continued to show strong double-digit growth. Compared with the first nine months of the previous year, the division increased its order intake substantially to CHF 1877.0 million. This is an increase of 27.2% on an adjusted basis, and 16.2% on a nominal basis. The power generation and the oil and gas segments were strong drivers of growth, while the hydrocarbon processing industry remained active. Demand was encouraging, particularly in emerging regions. As in recent years, the new equipment orders outperformed the service business. The growth was supported by major projects with long lead times in the first nine months; it is unlikely that these large project volumes will remain at the same level. For the full year 2008, the division expects to clearly exceed the order intake level of the previous year.

Orders received by Sulzer Metco totaled CHF 560.6 million, representing a slight adjusted growth of 0.9% and a nominal decrease of 3.5%. Demand remained stable in Sulzer Metco’s relevant markets in the first nine month period of 2008, while the reported volume has been affected by decreasing raw material prices. Compared with the same period of the prior year, activity in consumables and the service businesses were higher, while orders for the equipment business were lower. Asia and Europe were the strongest regions. For the full year 2008, order intake is expected to be around the same level as in 2007.

Compared with the first nine month of the previous year, Sulzer Chemtech posted an adjusted decrease in order intake of 7.2% (nominal –12.6%) to CHF 642.4 million. The division obtained a lower number of large orders compared to the previous period. The hydrocarbon processing industry remained active, but currently shows indications of lower project activity. Strong activity was reported in China, India, and the Middle East. For the full year 2008, the division anticipates order intake to be below the previous year.

Sulzer Turbo Services reported an order intake of CHF 237.5 million, an increase of 9.5% on an adjusted basis (nominal –0.4%). The market environment remained healthy in all market segments and regions. The acquisition of the South American turbomachinery service-provider Capime is expected to be completed around the end of the year and will only add to the Sulzer Turbo Services order intake in 2009. For the full year 2008, the division forecasts an order intake close to the level of the previous year.


Sulzer has developed in a robust manner in the first nine months of 2008. The corporation actively and carefully monitors the development of its markets. The uncertainties in the financial markets and the general economic environment make forward projections more challenging. However, Sulzer’s high-quality order backlog and its sound financial situation build a solid foundation for continued resilience in the future.

Currently, the oil and gas upstream and the power generation segment are expected to continue at high activity levels. The hydrocarbon processing industry is expected to show lower activity levels in the future. The global pulp and paper market and the aviation industry in North America indicate a decrease in activities. In the automotive sector, demand for Sulzer’s innovative applications is expected to continue going forward. Activities in Asia and the Middle East are projected to stay strong, while North America is expected to slow down. The outlook for the full year 2008 remains positive, despite the current global economic environment. The currency translation impact will remain significant.

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