Midyear results 2017

Rotating Equipment Services

Order intake of Rotating Equipment Services increased in the first half of 2017, whereas sales decreased slightly. Operational EBITA and operational ROSA remained broadly on the previous year’s level. Sulzer closed the acquisition of Rotec GT to become a sizeable player in the Russian gas turbine service market.

MYR17 RES

Targeting the Russian market

In the second quarter of the year, Sulzer closed the acquisition of a controlling stake in Rotec’s gas turbine maintenance business (Rotec GT). Rotec GT, headquartered in Moscow, is active mainly in the Russian market. The business was combined with Sulzer Russia’s service activities. Sulzer is now the leading independent gas turbine service provider for Russia and the CIS countries.

Sulzer changed its reporting structure and transferred the pumps spare parts business from Pumps Equipment to Rotating Equipment Services. Customers benefit from a single access point for services and parts. With new service agreements for electromechanical equipment, the division continued to strengthen strategically important relationships.

MYR17 RES sales

Increase in order intake

Order intake increased both on a currency-adjusted basis (+4.2%) and organically (+1.0%) compared with the same period of the previous year. The increase was triggered largely by turbo services which reported growing order intake despite increased competition from original equipment manufacturers. Pumps services (including parts) and the electromechanical business also grew. Regionally, Europe, the Middle East, and Africa as well as Asia-Pacific grew significantly, while the Americas increased slightly.

Sales decreased — stable operational EBITA and operational ROSA

Organically, sales decreased slightly from the previous year’s level, mainly due to the weaker order intake in the Americas in the last quarter of the previous year. Operational EBITA was on the previous year’s level, resulting in an operational ROSA of 12.4% compared with 12.2% in the first half of 2016.

RES key figures

If not otherwise indicated, changes compared with the previous year are based on currency-adjusted figures.

EBIT: Operating income
opEBITA: Operating income before restructuring, amortization, impairments, and non-operational items
opROSA: Return on sales before restructuring, amortization, impairments, and non-operational items (opEBITA/sales)