Positive Trend from Previous Year Continues
In the first quarter of 2005, Sulzer recorded a high order intake of CHF 630.4 million, representing a growth of 15.0% in nominal terms, adjusted for acquisition and currency effects 11.3% compared to the first quarter of the previous year. All core divisions increased their order intake.
For the first half of the year Sulzer expects the positive development of the order intake to continue.
The order intake rose by 15.0% in the first three months up to CHF 630.4 million in nominal terms. Acquisitions (Sulzer Pumps) had a positive impact on growth while currency effects negatively affected the conversion to the Swiss franc. Adjusted for both, the increase represents 11.3%. Asia operated at a high level, Europe was stable, while order intake from North America was fairly slow.
Order intake by division
Orders received at Sulzer Pumps climbed to CHF 328.1 million (up 18.7%). This corresponds to an adjusted1 rise of 8.7%, whereby the difference is mainly due to the acquisition of the pump lines Johnston, Paco and Crown last November. All segments were in good shape. In Europe, Asia, and South America the order intake increased further. After a rather slow start, the North American market gained momentum. The outlook for the upcoming months is good.
Compared to the first quarter of the previous year, Sulzer Metco posted a 9.7% (adjusted1 10.8%) growth in orders received to CHF 145.2 million. Especially in Europe and Asia a significant increase in order intake was recorded, while orders in North America were declining. All units of Sulzer Metco operated well; solely the volume and margin development for Turbine Components remained demanding. For this business the development of the US Dollar continues to be important. The prospects for positive development at Sulzer Metco remain intact.
Sulzer Chemtech recorded a rise in order intake to CHF 89.8 million, representing a nominal growth of 6.1% (adjusted1 9.5%) compared to the equivalent period of the previous year. The business in North and South America strengthened significantly. Asia once again made an excellent contribution to the strong order intake reported. The overall stable, high-level trend is likely to continue.
Sulzer Turbo Services posted a 24.7% increase (adjusted 30.9%) compared to the prior year level, to CHF 62.0 million. Especially at the end of the quarter the business activities strengthened. However, the competitive situation remains challenging, affecting aspired margin improvements. Sulzer Turbo Services expects some volatility in demand during the upcoming months.
Order intake at Sulzer Hexis is insignificant. The new system generation Galileo with a strongly improved performance is being introduced at the «Hannover Messe» this week. The selection process for qualified partners has been initiated. Results can be expected in the second half of 2005.
Order intake for «Other» – related primarily to Sulzer Innotec – grew slightly to CHF 5.2 million.
Outlook for the first half of the year
In the first three months of 2005 Sulzer continued the upwards trend from the previous year and expects a continuing good level in order intake during the upcoming three months.
Order intake for the half year will be published on July 14, 2005.