Continued growth in order intake, sales and profitability
In 2019, Pumps Equipment reported growth in order intake and sales. Operational EBITA increased significantly from 2018, leading to an improved operational ROSA. The division continued to focus on growing its water business, which achieved record order intake in 2019.
Highest ever order intake in water
Sulzer’s pumps play a key role in some of the biggest desalination and water transport projects in the world. Based on the company’s good positioning in, and continued focus on, the water market, Pumps Equipment secured two large orders for desalination and pipeline pumps in the Middle East. Providing highly efficient equipment with low energy consumption, Sulzer supports customers produce fresh water and transport it in pipelines to populations. These projects and continued growth momentum in the municipal water business helped the division achieve its highest ever water order intake in 2019.
Pumps Equipment continues to benefit from its strong market position, growing order intake in all market segments. Combined with our focus on operational excellence, we drove our profitability up by 80 basis points.
Frédéric Lalanne, Division President Pumps Equipment
Key figures Pumps Equipment
|
millions of CHF |
2019 |
2018 |
Change in +/–% |
+/–% adjusted 1) |
+/–% organic 2) |
|
Order intake |
1’458.9 |
1’372.1 |
6.3 |
8.3 |
8.0 |
|
Order intake gross margin |
27.4% |
26.3% |
|
|
|
|
Order backlog as of December 31 |
924.3 |
982.9 |
–6.0 |
|
|
|
Sales |
1’477.0 |
1’284.2 |
15.0 |
17.2 |
17.0 |
|
EBIT |
11.9 |
–27.2 |
n/a |
|
|
|
opEBITA |
59.7 |
41.4 |
44.0 |
56.8 |
56.3 |
|
opROSA |
4.0% |
3.2% |
|
|
|
|
Employees (number of full-time equivalents) as of December 31 |
5’759 |
5’713 |
0.8 |
|
|
1) Adjusted for currency effects.
2) Adjusted for acquisition and currency effects.
Order intake increased
In 2019, Pumps Equipment’s order intake increased by 8.3% over 2018, based on robust end markets. Order intake was particularly strong in the water (+17.3%) and chemicals (+16.4%) market segments. The division grew orders by 17.1% in Europe, the Middle East and Africa (EMEA) and by 18.8% in Asia-Pacific.
Order intake by segment
Order intake by region
Improved sales and profitability
Sales were stable in power and grew in all other segments. With 50.5% and 45.5%, respectively, growth was particularly strong in oil and gas and chemicals, on the back of a high order backlog and solid execution.
Operational EBITA increased significantly compared with 2018 as a result of higher sales and efficiency gains. Operational ROSA grew by 80 basis points to 4.0% as a result of order intake selectivity, more than offsetting a negative mix effect.
Safety performance in 2019
In 2019, Pumps Equipment reported a continued improvement in its accident frequency rate (AFR) to 1.8 cases per million working hours (2018: 2.7). The accident severity rate (ASR) also significantly decreased to 37.3 lost days per million working hours (2018: 107.3). This is due to the improved safety performance in the EMEA region. Please read more about the company’s health and safety efforts in the chapter “Safety”.
If not otherwise indicated, changes from the previous year are based on currency-adjusted figures.
Abbreviations
EBIT: Earnings before interest and taxes
opEBITA: Operational earnings before interest, taxes and amortization
opROSA: Operational return on sales adjusted
For the definition of the alternative performance measures, please refer to “Supplementary information”.