Growth in order intake, sales and profitability
In the first six months of 2019, Pumps Equipment recorded an increase in order intake. Sales, operational EBITA and operational ROSA also grew. Sulzer received two large pump orders in the water market totaling CHF 42 million.
Winning major orders in water transportation and desalination
In the first six months of 2019, Sulzer was awarded two large projects for desalination and pipeline pumps in the Middle East with a total value of CHF 42 million. Sulzer’s pumps are market leaders in terms of efficiency. They help customers produce freshwater for millions of people every day and transport it through pipelines to where it’s needed.
Our pumps are installed in some of the biggest desalination and water transport projects in the world. We provide our customers with the most efficient equipment on the market, supported by our highly valued technical application knowledge.
Frédéric Lalanne, Division President Pumps Equipment
Increase in order intake
In the first half of 2019, Pumps Equipment’s order intake grew organically by 5.5%. Adapting to the changing markets, the division focused on the growing segments in the water, energy and industry markets.
Order intake in the Water market rose by 22.0%, driven by the two projects mentioned above and by a high demand in the wastewater treatment business. Orders from the Oil and Gas market increased by 7.1%, driven by a solid demand in the downstream business, mainly in the Middle East and Asia. Orders from Power customers decreased on higher selectivity compared with the first half of 2018 but were up sequentially. Order intake in the General Industry markets remained stable.
Sales and profitability increased significantly
Sales increased in the first six months, with particularly strong performance in the Oil and Gas business.
Operational EBITA more than doubled compared with the first half of the previous year as a result of improved quality of order execution and supply chain management. Operational ROSA increased from 1.3% to 2.7%.
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 Pumps Equipment (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 |
752.5 |
752.5 |
719.8 |
4.5 |
5.9 |
5.5 |
|
Order intake gross margin |
27.4% |
27.4% |
27.6% |
|
|
|
|
Order backlog as of June 30/December 31 |
1’042.2 |
1’042.2 |
982.9 |
6.0 |
|
|
|
Sales |
690.3 |
690.3 |
594.9 |
16.0 |
17.8 |
17.3 |
|
EBIT |
–0.1 |
–1.1 |
–18.6 |
93.9 |
|
|
|
opEBITA |
20.0 |
18.9 |
7.7 |
146.2 |
146.3 |
144.1 |
|
opROSA |
2.9% |
2.7% |
1.3% |
|
|
|
|
Employees (number of full-time equivalents) as of June 30/December 31 |
5’778 |
5’778 |
5’713 |
1.1 |
|
|
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)