Strong performance in an adverse market environment

In the first six months of 2020, Rotating Equipment Services (RES) grew orders, sales and operational EBITA compared with the first half of 2019, despite supply chain disruptions and limited access to customer sites. Operational ROSA remained stable at 12.1%. As an essential service provider, Sulzer’s service teams helped ensure that critical infrastructure remained in operation throughout lockdowns.

If not otherwise indicated, changes from the previous year are based on currency-adjusted figures.

Keeping essential services running

As the coronavirus spread around the world, Sulzer’s service centers took quick and decisive action to protect their people and continue to serve customers. RES sites around the world swiftly implemented comprehensive contingency plans comprising strict social distancing, shift work, protective clothing and increased hygiene measures.

Designated an essential service provider by national governments, the service teams continued to provide support for crucial infrastructure during lockdowns, such as energy and water companies, transport systems and the healthcare sector. RES also offered pro bono support services for the maintenance of backup power supplies of hospitals, helping to ensure that patients received the stable care they needed – even if the main power supply failed.

Our service business played an essential role in ensuring functioning infrastructure during lockdowns. Thanks to the high commitment of our people to continue to serve our customers in these difficult times, we delivered a resilient H1 performance.

Daniel Bischofberger, Division President Rotating Equipment Services

Robust aftermarket activities

Servicing many products in various market segments, Sulzer’s business with spare parts and services is well-diversified. With roughly 100 service centers spread across the globe, the teams are close to customers and highly responsive to incoming projects. In an adverse market environment with country lockdowns and travel restrictions in place, the division’s diversity and customer proximity were decisive success factors. Our people’s dedication to serving clients quickly and pragmatically further strengthened customer relationships during these unprecedented times.

Strong order growth

Amidst the pandemic, all regions were able to keep their service centers in operation and showed strong resilience. Order intake in the first half of 2020 increased by 10.2%, despite lockdown measures and supply chain disruptions. All product lines supported the order increase, with particularly strong growth in Turbo Services. Pumps Services also delivered strong growth on good project activity. Regionally, particularly the Americas contributed to growth.

Sales growth and higher operational EBITA

In the first half of 2020, sales grew by 1.3% compared with the first six months of 2019, despite restricted access to customer sites, supply chain disruptions and customer travel restrictions.

Operational EBITA increased by 3.8% on strict cost control. Operational ROSA remained stable at 12.1%.

Key figures Rotating Equipment Services (January 1 – June 30)

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 the Sulzer Annual Report 2019.