Midyear Results 2017
Becoming a full line supplier in industrial process applications
In the first half of 2017, Sulzer completed the acquisition of Ensival Moret. The addition allows Pumps Equipment to close specific product gaps in its general industry pumps portfolio, such as axial flow pumps and slurry pumps. Ensival Moret offers a wide range of industrial pumps with strong positions in a variety of industrial applications such as fertilizers, sugar, mining, and chemicals.
Furthermore, the company won important orders to support power projects around the world. Pumps Equipment will supply pumps for the Kilpilahti combined heat and power plant in Finland. The division will also deliver vital cooling water pump kits for Forsmark Kraftgrupp’s nuclear power plant in Sweden.
Increase in order intake
In the first half-year of 2017, Pumps Equipment reported a growing order intake on a currency-adjusted basis (+5.4%) and remained broadly stable organically (–0.5%). While the oil and gas market grew, the power market declined. The water market decreased, due to fewer larger orders in the engineered water business. The general industry market increased because of the acquisition of Ensival Moret. Regionally, orders in Europe, the Middle East, and Africa (EMEA) as well as the Asia-Pacific region increased, whereas they decreased in the Americas.
Decrease in sales, operational EBITA, and operational ROSA
Currency-adjusted and organic sales decreased (–12.1% and –19.5%, respectively). This is largely due to the significantly lower sales volumes from the oil and gas market, which is in line with last year’s lower order intake, and the timing of projects. The division’s operational EBITA turned negative, mainly driven by lower sales volumes. Consequently, operational ROSA amounted to a negative 2.4%. As previously announced, the pumps spare parts business was transferred from Pumps Equipment to Rotating Equipment Services as of January 1, 2017. With the back-end loaded sales profile of the remaining new equipment business, the company expects to break even in the full year.
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)