The Sulzer divisional markets are still at a low activity level overall, but with wide regional differences. The weak situation in North America is contrasted by encouraging market developments in Asia.
Divisional developments:
Sulzer Metco's order intake totaled CHF 96 million, 17 percent below the prior year period (adjusted: –12%). Divisional order volume remains unsatisfactory, in particular due to weak demand in the US power generation sector and globally in the aviation sector. The good order intake for surface coating services and thin-film technology, and the encouraging overall order intake for March may indicate market stabilization in the foreseeable future.
Sulzer Turbomachinery Services' order volume of CHF 51 million precisely matches the good prior-year level (adjusted: +2%). Market conditions in the USA are still affected by customer reluctance to placing orders. However, the recent more lively tender activities confirm our cautious optimism announced at the beginning of March this year.
Sulzer Pumps' order intake totaled CHF 240 million, 16 percent lower than in the same prior year period. This is largely attributable however to the significantly stronger Swiss franc compared to all other relevant currencies. After adjustment, order intake almost matched the prior year level (–2%), with good volume in the oil and gas and petrochemical industry sectors. Numerous orders for new equipment were booked during March, particularly in Asian markets.
Sulzer Chemtech's order volume for the first quarter 2003 totaled CHF 86 million, nominally 6 percent above the prior year level, and even 22 percent higher after adjustment for currency effects. While the US market shows hardly any sign of recovery, the situation in Asian markets is encouraging, particularly in China.
The Sulzer Hexis venture division is currently focusing on the production, installation, commissioning and operation of the 400 “HXS 1000 Premiere” pre-series units now sold, almost 100 of which have been delivered so far. Together with customers, operating experience in practice is now being evaluated as direct input for development of a near-series product.
The steep decline in “Consolidation, other” reflects ongoing progress in the planned reduction of Sulzer International sales offices and companies
Sulzer order intake has been steadily rising since the weak third quarter of 2002, but it is not yet clear whether this represents an ongoing trend. Although economic prospects have improved thanks to relaxation of the Near East situation to some extent, a new factor of uncertainty now arises in the form of the Sars lung affliction, particularly in the growth regions of Eastern Asia and China. Sulzer will continue to focus on operational improvements while beeing ready for an upswing.
Consolidated order intake by the Sulzer Corporation for the first six months will be announced in detail on July 17, 2003.
Order intake for the first quarter of 2003 (in million CHF)
|
2003
Jan-Mar |
2002
Jan-Mar |
+/- % |
+/- %
adj. 1) |
|
| Sulzer |
481 |
550 |
-13 |
-1 |
|
| Core divisions |
473 |
533 |
-11 |
0 |
|
| Sulzer Metco |
96 |
116 |
-17 |
-12 |
|
| Sulzer Turbomachinery Services |
51 |
51 |
0 |
2 |
|
| Sulzer Pumps |
240 |
285 |
-16 |
-2 |
|
| Sulzer Chemtech |
86 |
81 |
6 |
22 |
|
| Venture division (Sulzer Hexis) |
0 |
2 |
- |
- |
|
| Consolidation, Other |
8 |
15 |
-47 |
- |
|
1) Adjusted for acquisitions, divestitures and currency effects
The Sulzer Corporation (www.sulzer.com) is comprised of the four core divisions Sulzer Metco (coating technologies and services), Sulzer Turbomachinery Services, Sulzer Pumps (including services), Sulzer Chemtech (chemical process components and services) and the venture division Sulzer Hexis (fuel cell systems for residential needs). Consolidated sales for 2002 totaled CHF 1946 million. The Sulzer Corporation employs more than 9000 people worldwide. |