Significant growth in order intake, sales and profitability
The Chemtech division reported double-digit growth of its order intake, sales and operational EBITA. Operational ROSA also increased strongly. Sulzer acquired GTC Technology US, LLC, and is supporting a pioneering project to turn carbon emissions into biofuels.
Strengthening petrochemical business
In the first half of 2019, Sulzer acquired the US company GTC Technology US, LLC. GTC develops technologies and commercializes licensed processes, including proprietary equipment and chemicals, for the petrochemical industry worldwide. The company, which employs around 200 employees, strengthens Chemtech’s leadership in petrochemical processes and provides a market entry into the attractive technology licensing business.
With the acquisition of GTC, we further reinforced our position as a technology supplier for the petrochemical industry.
Torsten Wintergerste, Division President Chemtech
Chemtech is reinforcing its reputation in innovative process engineering services and equipment. It is supporting the EU-funded project “Steelanol”, which aims to turn carbon emissions into biofuels. Chemtech will supply distillation equipment to ArcelorMittal’s steel production plant in Ghent, Belgium, to help convert waste gases into approximately 80 million liters of bioethanol every year.
Double-digit order growth
Chemtech reported an increase of its order intake by 25.9% (23.3% organic) in the first half of 2019 compared with the same period of the previous year. This robust growth was driven by strategic initiatives and particularly good development in the oil and gas market. The GTC acquisition added CHF 7.8 million in order intake.
Increase in sales, operational EBITA and operational ROSA
Sales increased by 14.4% in the first half of 2019, driven by the strong order backlog, especially in Separation Technology, and by efficiency improvements in the division’s factories.
Operational EBITA rose by 24.1%, thanks to higher volumes and a better product mix. Operational ROSA increased to 8.9% from 8.3% in 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 16, applying the same accounting policies as in the previous year.
Sales by market segment
Sales by region
Key figures Chemtech (January 1 – June 30)
|
millions of CHF |
2019 (new accounting policies) 1) |
2019 (previous accounting policies) 2) |
2018 |
Change in +/–% 3) |
+/–% adjusted 4) |
+/–% organic 5) |
|
Order intake |
350.3 |
350.3 |
280.0 |
25.1 |
25.9 |
23.3 |
|
Order intake gross margin |
29.7% |
29.7% |
31.4% |
|
|
|
|
Order backlog as of June 30/December 31 |
390.7 |
390.7 |
345.9 |
13.0 |
|
|
|
Sales |
303.8 |
303.8 |
267.7 |
13.5 |
14.4 |
13.0 |
|
EBIT |
24.1 |
23.9 |
14.3 |
66.7 |
|
|
|
opEBITA |
27.3 |
27.1 |
22.3 |
21.2 |
24.1 |
24.1 |
|
opROSA |
9.0% |
8.9% |
8.3% |
|
|
|
|
Employees (number of full-time equivalents) as of June 30/December 31 |
3’576 |
3’576 |
3’063 |
16.7 |
|
|
1) According to IFRS 16, see financial review and note 13 of the consolidated financial statements for details.
2) Without consideration of IFRS 16, applying the same accounting policies as in the prior year.
3) Comparing 2019 (previous accounting policies) with 2018.
4) Adjusted for currency effects. Comparing 2019 (previous accounting policies) with 2018.
5) Adjusted for acquisition and currency effects. Comparing 2019 (previous accounting policies) with 2018.
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)