All four Sulzer core divisions attained their goals for 2001 with a 2-digit increase in order intake. The average growth of 7% after adjustments – encouragingly high for such an eventful and demanding year – provides a stable basis for ongoing development in 2002. The global turbulence affected the fourth quarter 2001, the dynamic growth of prior months could not be maintained.
Individual core division developments:
Sulzer Metco order intake rose 19% to CHF 429 million. While the existing business activities maintained their high level of the prior year, good organic growth was attained with the newly acquired businesses. With widely dispersed activities (aero, automobile, power generation, medical devices) in the growing thermal spray coating market, future prospects are good despite the downswing in the aero segment.
Sulzer Turbomachinery Services order intake for 2001 rose to CHF 206 million, 57% higher than in prior year (adjusted: +9%). The adjusted value does not take account of the above-average growth of the newly acquired businesses within Sulzer Turbomachinery Services. Overall, the very high divisional growth rates of the first nine months could not be maintained in the fourth quarter. Despite the current slowdown, intrinsic growth prospects are intact.
Sulzer Pumps order intake rose by 13% to CHF 984 million (adjusted: +8%). Due to the varying developments in individual market segments, only modest growth is expected for 2002. Strategic focus for the year will mainly be on operational improvements.
Sulzer Chemtech attained a 10% rise in order intake to CHF 302 million (adjusted: +12%) despite market stagnation in the chemical and petrochemical sectors, which is expected to continue in 2002. Sulzer Chemtech will therefore concentrate on improving operating profit margins.
Sulzer Hexis (order intake CHF 8 million) reached some very important milestones in 2001. Before year-end the Sulzer venture division was awarded CE certification of its "HXS 1000 Premiere" fuel cell system, a few of which have already been delivered out of an initial pre-production series of 400. Development work continues on a more compact and further improved production model to be launched in 2004.
Order intake by the discontinuing businesses already divested (Sulzer Infra, now renamed Axima, and Sulzer Textil) or about to be sold (Sulzer Burckhardt) is not commented here any longer. Although their overall effect was to reduce total corporate order intake by 22% compared with prior year (adjusted: +1%), they are no longer relevant to the future of Sulzer.
Intact growth prospects
With widely varying developments in main markets and a difficult global economy at the present time, Sulzer faces a demanding year. Order intake for 2002 is nevertheless expected to rise further.
Although mid-term goal attainment will be slightly delayed by the general economic situation, Sulzer CEO Fred Kindle looks to the future with confidence: "We have essentially completed our strategic re-focusing phase, and the performance of our core divisions has improved markedly. The Sulzer Corporation is now realigned and ready to grow again. The growth prospects in all our businesses are intact.”
The Sulzer financial results for 2001 will be presented at the annual media conference on Friday March 8, 2002.
Order intake 2001 (million CHF)
|
|
2001
Jan.–Dec. |
2000
Jan.–Dec. |
?
in % |
Adj.
%1) |
|
Sulzer |
3 472 |
4 447 |
–22 |
+1 |
|
Core divisions
Sulzer Metco2) 3)
Sulzer Turbom. Services3)
Sulzer Pumps4)
Sulzer Chemtech
Venture division (Sulzer Hexis) |
1 921
429
206
984
302
8 |
1 636
361
131
869
275
2 |
+17
+19
+57
+13
+10
— |
+7
0
+9
+8
+12
— |
|
Consolidation, others |
104 |
127 |
–18 |
+5 |
|
Discontinuing operations
Sulzer Infra5)
Sulzer Textil
Sulzer Burckhardt6)
Sulzer Turbo7) |
1 439
730
537
172
— |
2 682
1 465
704
194
319 |
—
—
–24
–11
— |
–6
+7
–22
–2
— |
Since the 74% Sulzer participation in Sulzer Medica was transferred to Sulzer shareholders per July 10, 2001, no further account is taken here of Sulzer Medica’s order intake / sales.
1) Adjusted for acquisitions, divestitures and currency effects; organic growth of the new acquisitions is not taken into account
2) Not including order intake by Euroflamm and Metaplas Ionon (acquired per October 1, 2001)
3) Including Interturbine companies, consolidated per December 31, 2000
4) Including Ahlstrom Pumps, consolidated per June 1, 2000
5) Deconsolidated per June 30, 2001
6) As of July 1, 2001, not including Greenfield activities
7) Divested per January 1, 2001 |