Order Intake of CHF 2.3 Billion for the First Nine Months

In the oil and gas market, demand in Pumps Equipment and Chemtech declined due to increased capital discipline, in particular on the part of the major oil companies. Demand in Rotating Equipment Services, however, remained strong. Activity in the power industry, the water market, and the general industry was down slightly. Order intake in the Americas – particularly in Mexico – and in the Middle East saw a small increase year-on-year, while activity in the Asia-Pacific region and Europe was lower. The adjustment for currency translation and acquisitions was –3.8%.

Transformation process on track

Sulzer is in the midst of a transformation process into a more customer-focused and market-oriented company. The company had integrated its service business from the pumps division into Rotating Equipment Services by the beginning of this year. “We are now seeing the first tangible results. The combined service offering has been well received by our customers. This division has posted high adjusted order intake growth year-to-date,” states CEO Klaus Stahlmann.

The next step in transforming Sulzer into a market-oriented company is the new organizational set-up of Pumps Equipment, effective as of the beginning of 2015. Going forward, Pumps Equipment will be organized in three business units: an Oil and Gas unit, a Power unit, and a Water unit.

Outlook 2014

For the full year 2014, adjusted order intake of Pumps Equipment is expected to decrease slightly and Chemtech is forecast to remain flat due to fewer large projects compared with the previous year. Certain projects will likely not materialize this year due to increased capital discipline, in particular on the part of the major oil companies. Rotating Equipment Services is forecast to post solid adjusted order intake growth for the full year.

For the full year 2014, Sulzer expects adjusted order intake to slightly decrease, while sales and operating income before restructuring are expected to be flat to slightly up on an adjusted basis compared with the previous year.

Order intake in detail

Pumps Equipment

Order intake decreased by 4.0% on an adjusted basis compared with the prior-year period, mainly due to fewer large projects from the oil and gas market and slight weakness in most other end markets and regions.

For the full year 2014, adjusted order intake of Pumps Equipment is expected to decrease slightly due to fewer large projects compared with the previous year and increased capital discipline in particular on the part of the major oil companies. The power and water markets are forecast to be flat, possibly slightly down. All regions are expected to report results below last year’s level.

Rotating Equipment Services

Order intake of Rotating Equipment Services posted solid year-on-year growth of 6.7% for the first nine months on an adjusted basis. This confirms the positive impact of the service integration. Demand in the oil and gas market was strong, particularly in the Americas, while the rest of the world continued at a stable level. Activity in the power industry improved slightly in the Americas and Asia-Pacific, but remained low in Europe. Demand in the general industry was flat overall.

Rotating Equipment Services is forecast to post solid adjusted order intake growth for the full year. The oil and gas market, particularly in the Americas, is expected to grow strongly. The power industry is anticipated to remain flat. The general industry and the water market are forecast to be slightly firmer than in the prior-year period. The division expects slight growth in most regions for the full year.

Chemtech

Order intake decreased by 12.4% on an adjusted basis compared with the same period of the previous year. This decrease was caused by lower demand in the mass transfer and process technology business units. The Americas showed strong growth compared to the same period of 2013. Demand in Europe and the Asia-Pacific region decreased compared to the same period of last year.

For the full year 2014, adjusted order intake of Chemtech is forecast to remain flat due to fewer large projects compared with the previous year.