In the first nine months of 2019, order intake rose by CHF 183 million, with currency-adjusted growth of 8.9% and organic growth of 7.2%. Currency impact was a negative 2.1% and acquisitions contributed CHF 43 million.
Organic order intake grew in most of Sulzer’s end markets. The company benefited from significant order growth in water (+20%) and pulp and paper (+16%). Order intake from oil & gas was up by 15% organically compared with the same period last year. The rebound continued in the upstream and downstream segment while midstream recorded fewer orders due to a high base. Orders from the power market were up 3%, driven by a strong performance of the Rotating Equipment Services division. Orders from the markets served by the Applicator Systems division were up except for beauty (–11%).
Orders increased across all regions. Growth was particularly strong in Asia-Pacific, followed by EMEA (Europe, the Middle East, and Africa) and the Americas.
New president of Applicator Systems division
As previously announced, Girts Cimermans took over as president of the Applicator Systems division on October 21. At the same time, he became a member of the Executive Committee, which now has seven members again. Girts succeeds Amaury de Menthiere, who is retiring at the end of the year.
The level of customer inquiries in most of Sulzer’s end markets continues to be robust, and the company’s businesses have performed well in the first nine month of the year.
Sulzer confirms its full-year guidance, with orders expected to grow by 6% to 9% and sales by 7% to 9%, adjusted for currency effects and including an acquisitions effect of around 2%. Sulzer anticipates an opEBITA margin of around 10% in 2019.
Sulzer expects that the above-mentioned guidance combined with lower non-operational expenses will result in a significantly higher growth rate for net income compared with the growth rate of opEBITA.
1 Adjusted for currency effects
2 Adjusted for acquisition and currency effects.