All divisions continued to show double-digit growth rates. Overall, acquisitions, divestitures, and currency translation had a positive effect, with acquisitions contributing most significantly.
Order intake by division
Compared with the previous year’s first half, Sulzer Pumps increased its order intake by 19.5% (adjusted1 19.1%) to CHF 1,047.7 million. The market conditions remained at a high level. Demand was encouraging in all regions, particularly in the Middle East. The power generation and the oil and gas segments were especially strong, as well as activities regarding biofuel (ethanol) in North America. As in recent years, the new equipment orders are likely to outgrow the service business for the full year.
Orders received by Sulzer Metco climbed to CHF 395.0 million, equivalent to a rise of 18.8% (adjusted1 17.3%). There was a global positive trend with notable growth in the key segments power generation and aerospace. Demand for systems has been strong. The second quarter 2007 compares to a strong equivalent quarter in 2006. Sulzer Metco expects unchanged positive developments going forward.
Sulzer Chemtech showed exceptional growth. The division posted a year-on-year increase of 59.0% (adjusted1 39.2%) to CHF 512.2 million. Continuing buoyant markets in all segments and regions drove this order intake as well as large projects in North America, China, and the Middle East. The recently acquired companies Mixpac, Werfo, and Mold influenced growth positively, as did the smaller acquisition of Knitmesh. Sulzer Chemtech expects lower growth in the second half of the year due to the comparably large number of sizable orders in the first half year.
Sulzer Turbo Services showed healthy growth of 45.3% (adjusted1 45.3%) compared with the previous year’s period, reaching an order intake of CHF 172.3 million. The market environment was strong in the Americas, only slightly less so in Europe. Order intake in Asia was significantly better than last year. Positive market changes, especially in the Middle East and Europe, will influence Sulzer Turbo Services. The division will grow in 2007, exceeding the growth rate of 2006 substantially.
Outlook
Sulzer expects the order growth for the full year 2007 to be strong. This prospect reflects the trust Sulzer has in its end markets and operations today. Since markets are already operating at a high level, Sulzer believes the order intake growth rates will decline. Despite continued supply chain challenges and extended delivery times, sales will go up, but will continue to trail order intake.
The midyear results will be published on August 21, 2007.
Order Intake for the First Half of 2007 (January to June)
|
(in millions CHF) |
1H 2007 |
1H 2006 |
Δ |
Δ adjusted1 |
|
Divisions |
2,127.2 |
1,650.3 |
28.9% |
24.6% |
|
Sulzer Pumps |
1,047.7 |
877.0 |
19.5% |
19.1% |
|
Sulzer Metco |
395.0 |
332.6 |
18.8% |
17.3% |
|
Sulzer Chemtech |
512.2 |
322.1 |
59.0% |
39.2% |
|
Sulzer Turbo Services |
172.3 |
118.6 |
45.3% |
45.3% |
|
Other |
5.7 |
4.5 |
– |
– |
|
Total |
2,132.9 |
1,654.8 |
28.9% |
24.6% |
1 Adjusted for acquisitions, divestitures, and currency effects
|