Order Intake (millions of CHF) | 2011 | 2010 | Δ | Δ adjusted1 |
Divisions | 3 558.5 | 3 278.5 | 8.5% | 13.9% |
Sulzer Pumps | 1 705.6 | 1 613.7 | 5.7% | 10.4% |
Sulzer Metco | 673.6 | 643.1 | 4.7% | 15.3% |
Sulzer Chemtech | 701.7 | 621.3 | 12.9% | 21.2% |
Sulzer Turbo Services | 477.6 | 400.4 | 19.3% | 14.3% |
Others2 | 7.6 | 10.2 | – | – |
Total | 3 566.1 | 3 288.7 | 8.4% | 13.7% |
On an adjusted1 basis, Sulzer achieved a significant increase in order intake from full year 2010 of 13.7% (8.4% nominally). The strong Swiss franc led to a negative currency translation effect of about CHF 447 million(the company’s global presence is a natural hedge against material impacts of currency on profitability), while acquisitions contributed about CHF 273 million to the order intake. Excluding the negative currency translation effects, the order intake was at CHF 4 billion. Growth was driven by larger orders in the oil and gas upstream market (mainly in the first half of the year), the automotive industry, and other general industrial markets. The aviation industry remained strong. The hydrocarbon processing industry showed some growth driven by the chemical processing industry, where some larger orders were booked in the first six months of the year, while the refining business remained at a low level. In the course of the second half of the year, the power generation market stabilized, although nuclear projects suffered delays due to the incident in Japan. Strong growth was recorded in Europe and North America, and the emerging markets also continued to grow. The customer ordering behavior, which was affected by high uncertainty in the financial markets in the fall, improved again toward year-end.
The acquisition of Cardo Flow Solutions was closed at the end of July and added CHF 160 million to the order intake in the remaining five months of the year; this figure was influenced by currency translation effects and a slowdown in some local markets. Through this acquisition, Sulzer has become a leading provider of pumps and related equipment in the water and wastewater industry. The integration process is ongoing and is progressing well.
Outlook for 2012: moderate increase in order intake expected
Despite the ongoing uncertainties in the financial markets and their potential negative effect on the economy, Sulzer expects moderate order intake growth in 2012. The impact of these uncertainties cannot currently be fully assessed and bears a certain downside risk.
In the oil and gas industry, activities are expected to remain stable at a high level based on the current favorable market conditions in this segment. Activities in the hydrocarbon processing industry are forecast to remain at the current levels. In the power generation market, Sulzer anticipates further stabilization with some growth potential. The activity levels in the water and wastewater market are expected to grow, mainly driven by emerging markets. The automotive, the aviation, and other general industries are likely to remain stable at the current high levels.
In 2012, the acquired Cardo Flow Solutions business will contribute with a first full year to order intake, whereas only five months were consolidated in 2011.
Order intake by division
On an adjusted1 basis, Sulzer Pumps increased its order intake by 10.4% from the previous year. On a nominal basis—including Cardo Flow Solutions—orders increased by 5.7%. Activities in the oil and gas industry were at a high level in the first half of the year. In the hydrocarbon processing industry, project activity remained at a low level in general, with some ongoing activity in emerging markets. The power generation industry weakened in the course of the year. Nuclear projects suffered delays as a consequence of the nuclear incident in Japan. The pulp and paper market showed higher activity levels compared with the previous year. The acquisition of Cardo Flow Solutions was closed at the end of July and added CHF 160 million to the order intake in the remaining five months of the year; this figure was influenced by currency translation effects and slowdowns in some local markets. Through this acquisition, Sulzer has become a leading provider of pumps and related equipment in the water and wastewater industry. The integration process is ongoing and is progressing well. Geographically, North America, the CIS countries and some Middle Eastern countries helped drive the order intake for the division.
For 2012, the division anticipates a higher order intake, supported by the acquisition of Cardo Flow Solutions.
In 2011, Sulzer Metco showed strong adjusted1 order intake growth of 15.3% driven by most of its end markets. Demand for the division’s innovative coating solutions was particularly strong in the automotive industry. Based on a continued upward trend in air travel volume, the aviation segment developed positively, although the freight markets began to decline in the second half of 2011. Strong growth was recorded in the general industry segment, while the power generation segment grew at a slower pace. Geographically, demand was particularly high in North America and in Europe.
After the strong growth in 2011, the division expects an order intake at a similar level for 2012.
On an adjusted1 basis, Sulzer Chemtech posted a significant increase in order intake of 21.2% compared with the previous year. Its largest market, the hydrocarbon processing industry, stabilized, with some larger projects for mass transfer technology applications contributing positively to the order intake. The Process Technology unit recorded a substantial increase in orders, and activity levels for Tower Field Service and Sulzer Mixpac Systems remainedstrong. Geographically, demand was particularly high in the Middle East and in Asia.
After the strong growth in 2011, Sulzer Chemtech expects an order intake at a similar level for 2012.
Sulzer Turbo Services strongly increased its order intake by a nominal 19.3% (14.3% adjusted1) compared with the previous year, driven both by significant organic growth and by strong contributions from Sulzer Dowding & Mills, acquired in June 2010. In addition, larger orders were recorded in the first half of the year. The demand for the division’s service offering in the oil and gas and the power generation industries was healthy. The hydrocarbon processing industry showed signs of improvement and other industrial markets continued to grow. Through the acquisition, Sulzer Turbo Services has been able to diversify its product and service portfolio into new markets and has achieved significant sales synergies.
For 2012, Sulzer Turbo Services expects a moderate increase in order intake.
1 Adjusted for currency effects as well as acquisitions and divestitures
2 Others consists of: Corporate Center, real estate, Sulzer Innotec, and consolidation adjustments
Sulzer will publish its full-year 2011 results on February 23, 2012, and host the following events:
| Publication of Full-Year Results 2011 | February 23, 2012 (7.00 a.m. CET) |
| Annual Media Conference, Winterthur, CH | February 23, 2012 (9.30 a.m. CET) |
| Analyst and Investor Presentation, Zurich, CH | February 23, 2012 (4.00 p.m. CET) |
back