Resilient performance and accelerating digitalization
Orders continued their sequential growth, while sales increased 1.3% year-on-year. Operational profitability increased year-on-year from 12.1% to 13.4%, mainly driven by strong execution and cost discipline. Rotating Equipment Services (RES) is a key enabler in the transition to sustainable practices through digitalization, helping customers minimize their environmental footprint.
Note: If not otherwise indicated, changes from the previous year are based on currency-adjusted figures.
Driving growth and sustainability
As part of Sulzer’s overall sustainability strategy, the RES division is helping lead the energy transition to more sustainable products and practices. There is a growing demand for retrofits and upgrades from our customers who are looking to maximize the efficiency and sustainability. Retrofits can significantly lower energy consumption, operating costs and waste, while improving the performance of the whole system — thanks to the world-class efficiency of Sulzer’s products. Retrofits therefore represent a key strategic priority for Sulzer, as well as increasing our market share in servicing renewable energy installations such as wind power, biomass and waste-to-energy plants.
We are also reinventing the way we do business with advanced data analytics and additive manufacturing. Our analytics through Sulzer’s BLUE BOX artificial intelligence solution allow us to identify pumps that are underperforming for retrofit and optimization — before the problems arise. Thanks to increasing additive manufacturing and our global production and service center network giving us unbeatable proximity to our customers, we are becoming faster and more flexible regarding repairs, spare-parts and retrofits — helping us to drive growth.
Our highly efficient technologies, combined with customer proximity through our global network and extensive service offering, can help our customers significantly minimize their environmental footprint. We are therefore well-positioned to support our industries to transition towards a more sustainable future.
Daniel Bischofberger, Division President Rotating Equipment Services
Key figures Rotating Equipment Services (January 1 – June 30)
|
millions of CHF |
|
2021 |
|
2020 |
|
Change in +/–% |
|
+/–% adjusted 1) |
|
+/–% organic 2) |
|
Order intake |
|
570.8 |
|
617.0 |
|
–7.5 |
|
–5.6 |
|
–6.0 |
|
Order intake gross margin |
|
37.3% |
|
39.0% |
|
|
|
|
|
|
|
Order backlog as of June 30/ December 31 |
|
496.1 |
|
435.0 |
|
14.0 |
|
|
|
|
|
Sales |
|
525.5 |
|
528.1 |
|
–0.5 |
|
1.3 |
|
0.9 |
|
Operating income (EBIT) |
|
66.3 |
|
51.2 |
|
29.4 |
|
|
|
|
|
Operational profit |
|
70.3 |
|
64.0 |
|
9.8 |
|
11.3 |
|
10.7 |
|
Operational profitability |
|
13.4% |
|
12.1% |
|
|
|
|
|
|
|
Employees (number of full-time equivalents) as of June 30/ December 31 |
|
4’510 |
|
4’449 |
|
1.4 |
|
|
|
|
1) Adjusted for currency effects.
2) Adjusted for acquisition and currency effects.
Growing sequential order intake
Order intake in the second quarter grew a further 7.3% sequentially, following a 10.3% sequential rise from Q4 2020 to Q1 2021, confirming a continuing positive upward trend. Customer site restrictions continued to ease in the first half of the year. Orders in H1 2021 saw a 5.6% decrease, mainly due to record high order intake in H1 2020 and postponement of some projects by customers.
The Americas (AME) region is now seeing the strongest rebound in maintenance activities. The other regions are experiencing a similar trend, and all regions grew sequentially in the first and second quarters of 2021.
Order intake by segment
Order intake by region
Higher sales and operational profitability
Sales in the RES division increased 1.3%, thanks to a healthy backlog entering the year. Sales increased in all regions — Americas, Europe, the Middle-East and Africa, and Asia-Pacific.
Compared with the first half of 2020, operational profitability increased to 13.4%, up from 12.1%, mainly thanks to strong execution and cost discipline.