Strong Water and Industry growth, solid execution with significant uplift in operational profitability

In the first half of 2021, orders in Water and Industry grew 25.2% and 5.8% respectively. With 41%, Water is now the biggest segment in the Pumps Equipment (PE) division. Sales increased significantly by 8.8% compared to the same period in 2020. Faster realization of savings from structural cost actions and a better mix led to an increase in operational profitability of 5.0%, up from 3.1%. PE is on track with the integration of Nordic Water, announced in January 2021, which expands its leading position in the water market, one of Sulzer’s strategic growth priorities.

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

Capturing growth opportunities in Water and Industry

Global megatrends like growing populations, urbanization and water scarcity along with the push towards sustainability are unlocking significant growth potential in the Water and Industry businesses. With a complete product portfolio and as a critical equipment supplier throughout the entire water ecosystem and for process-critical industrial applications, Sulzer is uniquely placed to capitalize on the expected growth in the global water and industry markets.

In the beginning of February 2021, Sulzer closed its acquisition of Nordic Water, a leading supplier of water treatment technologies. With this complementary addition to PE’s portfolio, Water has become the largest single segment in the PE division, amounting to 41% of PE. The integration of Nordic Water is progressing well. This acquisition will further solidify Sulzer’s position with one of the broadest range of water pumping and treatment solutions.

Green energy from wastewater treatment

The growing push towards sustainability and focus on protecting natural resources reinforce the importance of Sulzer’s solutions. In Wastewater, for example, where Sulzer occupies a leading global position, we helped transform one of Europe’s biggest wastewater plants in Vienna from a major energy consumer to a sustainable net energy producer. Using a range of our highly efficient turbocompressors and mixers, the plant is helping reduce the city’s annual carbon emissions by 40’000 tonnes.

We achieved increased orders and sales in Water and Industry, our strategic growth segments. Supported by the early and successful implementation of our Energy Resilience program, we were able to significantly boost our operational profitability. Going forward, we are perfectly positioned to capture growth opportunities.

Frédéric Lalanne, Division President Pumps Equipment

Key figures Pumps Equipment (January 1 – June 30)

Water and Industry growth could not entirely offset the anticipated decline in Energy

In the first six months of 2021, orders in Water and Industry continued to grow by 25.2% and 5.8% respectively. However, these increases were not able to offset the anticipated decline in Energy (–49.5%). The decline can be attributed to a strong first half of 2020 and continued order selectivity.

We expect a rebound in the energy market in the second half of the year, along with continued momentum in Water and Industry.

Strong execution and significant operational profitability uplift

Sales saw an increase of 8.8% versus the previous year, mainly driven by Water and Industry (+23.7% and +12.6% respectively). These increases were able to more than offset the decreased sales in Energy due to customer delays of large projects in the Middle East.

PE achieved a strong increase in operational profitability to 5.0%, up from 3.1%, supported by the significant growth in Water and Industry, as well as implemented cost-out measures from Sulzer’s Energy Resilience program.