Sulzer Q1 2023: Strong Growth due to Large Orders

Orders YoY +31.2% organic, driven by double digit growth in all divisions. Order backlog increased to CHF 2.1bn. 2023 guidance confirmed.
Sulzer Q1 2023: Strong Growth due to Large Orders

Image source: Sulzer Ltd.

In Q1 2023, order intake increased organically by 31.2% compared to the same period one year ago, with all three divisions contributing with double digit growth. Currency translation had a negative impact of CHF 44.8m versus the prior year period and divestments contributed negatively by CHF 12m.

Order intake in Flow Equipment grew by 42.8% organically mainly driven by strong momentum in Energy. Orders in Water decreased slightly due to our increased focus on margins in the acceptance of orders in large desalination projects, whereas Industry remained stable compared to the same period a year ago.

Orders in our Services division were organically 16.0% higher YoY with double digit growth in all product lines.

The Americas and EMEA region grew strongly YoY, more than compensating for the decline in the smaller APAC region, which is due to the comparison with Q1 2022 comprising a high single order.

Chemtech grew orders organically by 33.7% with strong demand especially for the Renewables business, which tripled orders compared to Q1 last year due to a very large order for a bio-plastic plant in China.

Geographically, Sulzer’s order intake grew in all regions. Europe, the Middle East and Africa YoY was up by 21.7% organically, the Americas 24.5% higher and the Asia Pacific region grew strongly by 56.8%.

Sulzer expect demand in our markets to remain robust. The order intake in Q1 was ahead of their expectations mainly due to large projects and they currently expect Q2 order intake to be broadly in-line with the previous year. However, due to the general economic uncertainty Sulzer will review their guidance for order intake with H1 results in July.

For the moment, Sulzer confirm their previously communicated guidance for the full year 2023 with orders up organically (adjusted for foreign exchange, acquisitions and divestitures) by 3 to 6% year on year, sales by 7 to 9% and operational profitability of above 10%.

Source: Sulzer Ltd.

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