Strengthening the applicator systems portfolio
At the beginning of 2017, Sulzer established a fourth division called Applicator Systems (APS). Order intake, sales, and operational EBITA increased in 2017 compared with the previous year. With the acquisition of Transcodent, Sulzer further strengthened its leading position in the dental market segment.
New division Applicator Systems up and running
On January 1, 2017, Sulzer changed its reporting structure for increased transparency and customer focus: The combination of the Sulzer Mixpac Systems (SMS) business unit and the recently acquired Geka and PC Cox businesses are now being reported as the new Applicator Systems division. APS offers a global platform for high-precision plastic molding, assembly, decoration, and filling technologies for mixing and applicator solutions. The division serves customers in the dental, industrial adhesives, and beauty (particularly mascara) segments.
Our acquired businesses supplemented our solid organic growth. With Transcodent, we were able to round out our dental portfolio and became a full-line supplier for dental applications. The integration is well underway.
Amaury de Menthiere Division President Applicator Systems
In the third quarter of 2017, Sulzer acquired Transcodent. The company, headquartered in Kiel, Germany, is a leading provider of multiple dose and unit dose application systems, needles, tips, and capsules for the dental market. The acquisition further strengthened the Applicator Systems division of Sulzer in its dental segment, where Sulzer is already a global market leader.
Solid organic order intake and sales growth
In 2017, order intake increased on a currency-adjusted basis (55.7%) and organically (6.0%) compared with 2016. Sales, which track orders closely in this division, increased by 54.9% and organically by 5.0%. The acquisitions of PC Cox, Geka, and Transcodent contributed CHF 135.8 million to sales in 2017. Organic growth was driven by high sales volumes in the industrial adhesives segment. All product lines and geographies contributed to growth.
Sales by market segment
Sales by region
Higher operational EBITA
In 2017, operational EBITA increased significantly, both on a currency-adjusted basis (34.8%) and organically (10.3%). Operational ROSA, while diluted by the Geka acquisition which closed in the third quarter of 2016, actually increased on a comparable basis from pro forma 20.1% in 2016 to 20.5% in 2017.
Implementing Sulzer’s safety culture
In 2017, Applicator Systems focused on integrating Sulzer’s safety standards and driving progress in its newly acquired businesses. The division reported an accident frequency rate (AFR) of 7.2 cases per million working hours in 2017. The accident severity rate (ASR) amounted to 50.4 lost days per million working hours. APS paid particular attention to an increased management focus on safety matters, driving safety ownership, and implementing Sulzer’s safety culture. As a result, all sites of APS met or exceeded their safety performance targets in 2017. Please read more about the company’s safety and health efforts in the chapter “Social sustainability”.
If not otherwise indicated, changes compared with the previous year are based on currency-adjusted figures.
Key figures Applicator Systems
|
millions of CHF |
2017 |
2016 3) |
Change in +/–% |
+/–% adjusted 1) |
+/–% organic 2) |
|
Order intake |
426.3 |
272.6 |
56.4 |
55.7 |
6.0 |
|
Order intake gross margin |
43.9% |
49.5% |
|
|
|
|
Order backlog as of December 31 |
64.7 |
58.0 |
11.6 |
|
|
|
Sales |
423.5 |
272.0 |
55.7 |
54.9 |
5.0 |
|
EBIT |
63.2 |
39.7 |
59.2 |
|
|
|
opEBITA |
86.8 |
64.1 |
35.4 |
34.8 |
10.3 |
|
opROSA |
20.5% |
23.6% |
|
|
|
|
opROCEA |
22.7% |
29.1% |
|
|
|
|
Employees (number of full-time equivalents) as of December 31 |
1’716 |
1’562 |
9.9 |
|
|
1) Adjusted for currency effects.
2) Adjusted for acquisition and currency effects.
3) Reclassified numbers according to new operational structure, effective since January 1, 2017.
Abbreviations
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)
opROCEA: Return on capital employed (opEBITA/average capital employed)