An ongoing upward trend in all markets and regions relevant for Sulzer characterized the incoming business during the first quarter. Sulzer Chemtech in particular benefited from a significant order (announced in February) for a gas-to-liquids plant in Qatar which added to an already good order intake. Sulzer Turbo Services, too, reported exceptionally strong growth. Overall, acquisitions and divestitures had a positive and currency translation a slightly negative effect.
Order intake by division
Compared with the previous year’s first quarter, Sulzer Pumps increased its order intake by 15.9% (adjusted1 18.8%) to CHF 524.9 million. High volume was recorded in the oil and gas and power generation segments. Demand from all regions remained strong, especially from Asia, the Middle East, and Europe. Activity levels are expected to remain high.
The order intake of Sulzer Metco increased by 24.2% (adjusted1 24.3%) to CHF 197.4 million. Most markets were very dynamic. All segments contributed to the growth of incoming business, although the automotive sector lagged slightly behind the others. Especially in Asia, demand was very high, while business in Europe and the Americas continued its positive development. Sulzer Metco is confident to maintain the healthy growth during the next months.
Sulzer Chemtech reported another exceptional quarter. Orders received increased by 63.1% (adjusted1 47.2%) to CHF 279.6 million, compared with an already high figure of CHF 171.4 million in the previous year. Demand from all market segments was good and very substantial orders were received from all regions.The Mixpac, Werfo, and Mold acquisition completed at the end of last year had a good start into the year and contributed to the order intake of Sulzer Chemtech in line with expectations. The division acquired a significant order for key equipment for a gas-to-liquids (GTL) plant in Qatar and a number of further sizeable orders.
Sulzer Chemtech expects continued but less exceptional growth for the coming months.
Order intake of Sulzer Turbo Services climbed to encouraging CHF 81.5 million, achieving an increase of 33.8% (adjusted1 36.4%) compared to the previous year’s first quarter. Demand from all segments was good, with oil and gas and power generation developing especially well. The North American market continues to evolve particularly well. The division expects the positive trend to continue.
Outlook
As business activity in the main relevant segments is forecast to remain strong, Sulzer expects continued high order intake levels. Large orders could impact singular quarterly volumes, particularly those of Sulzer Pumps and Sulzer Chemtech. Growth rates are likely to become more moderate, due to the very strong 2006 base effect.
Order Intake for the First Quarter 2007 (January to March)
|
(in millions CHF) |
1Q 2007 |
1Q 2006 |
Δ |
Δ adjusted1 |
|
Divisions |
1 083.4 |
844.2 |
28.3% |
27.0% |
|
Sulzer Pumps |
524.9 |
453.0 |
15.9% |
18.8% |
|
Sulzer Metco |
197.4 |
158.9 |
24.2% |
24.3% |
|
Sulzer Chemtech |
279.6 |
171.4 |
63.1% |
47.2% |
|
Sulzer Turbo Services |
81.5 |
60.9 |
33.8% |
36.4% |
|
Other |
2.7 |
0.7 |
– |
– |
|
Total |
1 086.1 |
844.9 |
28.5% |
27.2% |
1 Adjusted for acquisitions, divestitures, and currency effects
|