Order intake, sales and profitability increased
In 2018, the Chemtech division reported growing order intake and sales. Operational EBITA and operational ROSA also increased. Sulzer expanded its cooperation with SGL group in the field of column internals and teamed up with Futerro and TechnipFMC to form the PLAnet™ initiative for the production of sustainable plastics from polylactic acid (PLA).
Strategic collaboration for new products and solutions
In January 2018, the Chemtech division extended its cooperation with SGL group in the field of column internals. The partners have now succeeded in making a complete family of column internals based on carbon fiber composite — a material that is very temperature- and corrosion-resistant.
Chemtech achieved growing orders, sales volumes and profitability in 2018. Together with our partners we continue to develop new products, new sustainable materials and state-of-the-art processes to bring innovative solutions to the market.
Torsten Wintergerste, Division President Chemtech
In December 2018, Sulzer, Futerro and TechnipFMC teamed up to simplify the manufacture of bioplastics. The three major process technology and equipment specialists have formed the PLAnet™ initiative to promote the production of sustainable plastics made of polylactic acid (PLA). This strategic collaboration will support manufacturers interested in entering the bioplastic market by delivering integrated PLA technology packages. Most of the industrial PLA plants worldwide operate with Sulzer’s technology.
Order intake increased
In 2018, Chemtech reported a significant increase in order intake. The Separation Technology business unit was behind much of the growth. There were two large orders that particularly contributed to the increase: one for Sulzer’s patented VIEC technology and the other for the company’s distillation equipment, which supports the pioneering EU-funded project “Steelanol”. The project aims to turn carbon-rich industrial emissions into bioethanol fuels. Order intake grew across all market segments, with the most pronounced increase coming from oil and gas.
Order intake was strong across all regions, particularly in Asia-Pacific and Europe, the Middle East and Africa (EMEA), where it was supported by the oil and gas market rebound.
Increase in sales, operational EBITA and operational ROSA
In line with the strong order intake increase, the division’s sales also grew significantly compared with 2017. Major sales drivers were the Asia-Pacific and Europe regions. Operational EBITA increased significantly in 2018, supported by higher volumes, increased productivity and a favorable product mix. Accordingly, operational ROSA rose significantly compared with the previous year.
Sales by (sub-)segment
Sales by region
Safety performance in 2018
In 2018, the accident frequency rate (AFR) at Chemtech increased to 1.8 cases per million working hours (2017: 1.5). The accident severity rate (ASR) improved to 80.4 lost days per million working hours (2017: 84.7). An increased number of safety walks and a stronger focus on safety for work in confined spaces supported the prevention of accidents involving confined space activities, one of the division’s highest risk activities. You can read more about the company’s safety and health efforts in the chapter “Social sustainability”.
If not otherwise indicated, changes from the previous year are based on currency-adjusted figures. These are reported without consideration of IFRS 15, applying the same accounting policies as in the prior year.
Key figures Chemtech
|
millions of CHF |
2018 (new accounting policies) 1) |
2018 (previous accounting policies) 2) |
2017 |
Change in +/–% 3) |
+/–% adjusted 4) |
+/–% organic 5) |
|
Order intake |
600.1 |
600.1 |
501.5 |
19.7 |
20.5 |
20.5 |
|
Order intake gross margin |
31.3% |
31.3% |
31.0% |
|
|
|
|
Order backlog as of December 31 |
345.9 |
323.2 |
315.3 |
2.5 |
|
|
|
Sales |
563.2 |
563.4 |
478.0 |
17.9 |
18.6 |
18.6 |
|
EBIT |
14.5 |
13.3 |
11.0 |
21.0 |
|
|
|
opEBITA |
50.0 |
48.8 |
25.0 |
94.8 |
94.6 |
94.7 |
|
opROSA |
8.9% |
8.7% |
5.2% |
|
|
|
|
opROCEA |
24.6% |
23.0% |
11.3% |
|
|
|
|
Employees (number of full-time equivalents) as of December 31 |
3’063 |
3’063 |
2’878 |
6.4 |
|
|
1) According to IFRS 15, see financial review and note 34 of the consolidated financial statements for details.
2) Without consideration of IFRS 15, applying the same accounting policies as in the prior year.
3) Comparing 2018 (previous accounting policies) with 2017.
4) Adjusted for currency effects. Comparing 2018 (previous accounting policies) with 2017.
5) Adjusted for acquisition and currency effects. Comparing 2018 (previous accounting policies) with 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)