Order intake by division
The order intake of Sulzer Pumps increased by 18.5% (adjusted¹ 18.0%) to a record volume of CHF 2 076.9 million. All industries were favorable. The oil and gas, the hydrocarbon processing, and the power generation markets were of particular note, driven by an increased oil price, increasing project sizes, and high energy demand in all regions. Activities in the pulp and paper market remained at a high level. The biofuel market continued to be active in Europe, but experienced a slowdown in North America, because of higher raw material prices and logistical challenges. Growth was strong in all regions with the highest growth rates in the Americas. Order intake for 2008 is expected to remain at a high level with momentum from the oil and gas related business, as well as from the power generation industries, while the pulp and paper market is more exposed to the general economical development.

Sulzer Metco increased its order intake compared to the equivalent period of the previous year by 15.8% (adjusted¹ 14.0%) to CHF 762.8 million. The key markets were in a favorable condition. The aviation market again reported high demand for new aircraft engines. The division expanded its application portfolio from coatings for aircraft engines to thermal-spray coating of landing gears. The industrial gas turbine market increased its activity, both in new equipment and in the repair business. Asia-Pacific showed a remarkable growth, followed by Europe and North America. For 2008, Sulzer Metco expects moderate growth, and the prospects for power generation, aviation, and automotive markets are likely to remain intact.

Sulzer Chemtech noted very strong growth for the fourth consecutive year. Order intake for 2007 increased year-on-year by 47.9% (adjusted¹ 26.7%) to CHF 890.8 million. The division continued to benefit from high demand in all relevant market segments and regions, especially from the Middle East and Asia. In the first quarter 2007 an extraordinary large order for the Pearl Gas-To-Liquid (GTL) plant project in Qatar has been reported. The new business unit Sulzer Mixpac Systems contributed substantially to the division’s performance. Order intake is expected to remain at a high level in 2008, with a significantly lower growth rate due to the base effect.

Sulzer Turbo Services posted an order intake in 2007 of CHF 313.2 million, 24.1% (adjusted¹ 24.4%) above the prior-year figure. The division benefited from good conditions in all market segments and regions. Particularly positive were North America and the Middle East. Latin America showed high growth potential. The market conditions in Europe were stable. The power generation segment was notably stronger than in the previous year. The market segments and regions are expected to remain favorable for the division. However, the Middle East poses political concerns. Additionally, the weak US dollar may also have an impact on the order intake of the division.

Outlook for 2008
Due to the further increased base for all divisions, Sulzer expects clearly reduced order intake growth rates in 2008. The oil and gas upstream and downstream markets are likely to remain strong, as are the power and aviation segments. Some weakening in the pulp and paper and in the general industries segments is envisaged. Overall, Sulzer sees slowing economic growth in the USA and Europe, whereas the other regions should continue to be strong.