Sulzer: Three Strong Quarters in a Row
In the first nine months of 2005, Sulzer recorded a high order intake of CHF 2 007.8 million, representing a growth of 20.8% in nominal terms (adjusted for acquisitions, divestitures, and currency effects 14.2%) compared to the third quarter of the previous year. All core divisions ...
... increased their order intake. Sulzer expects a positive development in order intake for the remainder of the year.
The core divisions recorded a 21.0% year-on-year rise in order intake for the first three quarters. After adjustment1, this corresponds to an increase of 14.3%. With orders received totaling around CHF 700 million, the third quarter was this year’s strongest yet.
Order intake by division
Sulzer Pumps boosted orders received 27.0% to CHF 1 037.3 million. Adjusted1, this corresponds to an increase of 13.0%. All market segments and regions showed positive trends. The division`s prospects for the fourth quarter remain good, though seasonal influence and markedly fewer large projects are expected.
Sulzer Metco registered 9.3% (adjusted1 9.1%) growth in orders received in the first nine months of the year, compared to the equivalent period of the previous year. Total orders amounted to CHF 430.8 million. Orders in automotive and general industry segments developed particular well, while growth rates in the aerospace and power generation industries remained on a lower level. Sulzer Metco expects a positive order trend in the months ahead.
Sulzer Chemtech recorded an order intake of CHF 328.2 million in the nine months until the end of September, representing a nominal growth of 26.4% (adjusted1 27.6%) compared to the equivalent period last year. The third quarter, too, contributed to this excellent volume. The Asia, Middle East and the Americas regions were particularly active. The positive business trend is likely to continue in the months ahead, though the figures are unlikely to match the peaks seen in the second and third quarters of 2005.
Sulzer Turbo Services posted a 10.9% rise in order intake in the first nine months (adjusted1 12.9%) compared to the prior year level to CHF 196.7 million. All regions staged a recovery. The hurricane Katrina had a limited effect on a subsidiary in Louisiana. Due to seasonal factors, the division expects a somewhat weaker fourth quarter.
On August 25, 2005, Sulzer announced that as of 2006 it will not invest further in Sulzer Hexis. The search for a partner was not successful and has now been stopped. All necessary actions have been taken to wind down the operations.
Order intake for Other related primarily to Sulzer Innotec remained at its prior-year level of CHF 14.4 million.
Outlook for full year 2005
The above-average growth in order intake seen in 2005 so far is the result of Sulzer's strong market positions in very active end markets. The order situation is expected to remain good overall in the months ahead. Sulzer expects operating income for the year as a whole to be significantly higher than last year.