Increase in order intake, sales and profitability

In the first half of 2018, the Chemtech division reported growing order intake and sales compared with the same period of 2017. Operational EBITA and operational ROSA also improved. Sulzer extended its cooperation with SGL group in the field of column internals.

Extending cooperation for column internals

In the first half of 2018, the Chemtech division extended its cooperation with SGL group in the field of column internals. SGL provides carbon-made products that can replace steel, aluminum, copper or plastic foil. Carbon is more temperature- and corrosion-resistant than these materials. For the first time, the partners have made a complete family of column internals based on carbon fiber composite available to their customers around the world.

We are thrilled that our VIEC technology is very well received with our customers. The same goes for our column internals made of carbon fiber composite materials that we developed in cooperation with SGL.
Torsten Wintergerste Division President Chemtech

Chemtech showcased its products at the Achema 2018 exhibition in Frankfurt, Germany. With 145’000 visitors, Achema is the world forum for chemical engineering and the process industry. Through virtual and augmented reality applications, the division offered its visitors a firsthand experience of how its equipment fits into a process plant.

Increase in order intake

In the first half of 2018, Chemtech reported growing order intake. The increase in order intake was driven by the Separation Technology business unit. Order intake in the oil and gas market grew, supported by the recent VIEC acquisition. The division also reported more orders in the general industry markets compared with the first half of 2017.

Regionally, order intake growth was most pronounced in Europe, the Middle East and Africa (EMEA), followed by the Americas. Order intake in Asia-Pacific decreased.

Sales, operational EBITA and operational ROSA increased

Sales increased by 13.3% compared with the first half of 2017. The growing sales volume in Separation Technology offset a decrease in Tower Field Services.

Operational EBITA increased significantly in the first half of 2018, supported by higher volumes and product mix as a result of Chemtech’s focused sales strategy, as well as by higher productivity. Accordingly, operational ROSA rose significantly from the same period last year.

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.

Sales by market segment

Sales by region

Key figures Chemtech (January 1–June 30)

millions of CHF	2018 (new accounting policies) 1)	2018 (previous accounting policies) 2)	2017	Change in +/–% 3)	+/–% adjusted 4)	+/–% organic 5)
Order intake	280.0	280.0	265.5	5.5	5.0	5.0
Order intake gross margin	31.4%	31.4%	29.7%
Order backlog as of June 30/December 31	342.0	328.9	315.3	4.3
Sales	267.7	263.5	231.3	13.9	13.3	13.1
EBIT	14.3	11.8	6.0	96.4
opEBITA	22.3	19.8	11.4	73.5	71.1	71.2
opROSA	8.3%	7.5%	4.9%
Employees (number of full-time equivalents) as of June 30/December 31	2’747	2’747	2’878	–4.5

1) According to IFRS 15, see financial review and note 13 of the interim consolidated financial statements for details.

2) Without consideration of IFRS 15, applying the same accounting policies as in the prior year.

3) Comparing the previous accounting policies 2018 with 2017.

4) Adjusted for currency effects. Comparing the previous accounting policies 2018 with 2017.

5) Adjusted for acquisition and currency effects. Comparing the previous accounting policies 2018 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)