– Business review – Flow Equipment
Strong order growth and rising profitability
Note: If not otherwise indicated, changes from the previous year are based on currency-adjusted figures.
The Flow Equipment division drove very strong order growth of 14.0% versus the first half of 2021. The Americas performed particularly well to achieve this result (+29.3%), with growth especially strong in Energy and Industry. Sales were impacted by the prevailing global supply chain difficulties, while the division was able to increase operational profitability. The division continues to grow its cleantech solutions and support the energy transition and is well-positioned to meet growing infrastructure demands for both water and industrial applications.
Supporting global energy security
The Flow Equipment division continues to pursue its strategy of capitalizing on growth opportunities with its expanding range of cleantech solutions and supporting the energy transition. In the first half of 2022, the division announced for example that it is supplying a selection of critical process pumps to Shell’s major new biofuel facility in Rotterdam, the Netherlands. Expected to become one of the largest biofuel production sites in Europe, once operational the facility will produce 820’000 tonnes of low carbon fuels (LCF) per year, enough to eliminate 2’800’000 tonnes of CO2 emissions annually. Sulzer will support critical processes at the facility, including the supply of boiler feedwater pumps (BFPs).
The division is also seeing renewed strong activity in the energy markets as post-pandemic demand and the Ukraine war take effect. Having rightsized capacity in its Energy business and significantly optimized costs, the division is ready to take on selective business from its customers and take advantage of the soaring demand, while also helping to ensure reliable energy supply at a time of increasing uncertainty and anticipated global shortages.
![]()
Flow Equipment continues to deliver on its strategy, helped by our ability to seize opportunities in all the division’s markets. The order conversion to sales was hampered by ongoing supply chain disruptions, which we expect to fade in the second half of the year. Despite the headwinds, we were able to once again increase our operational profitability.”
Frederic LalanneCEO and Division President Flow Equipment
Key figures Flow Equipment (January 1 – June 30)
|
millions of CHF |
|
2022 |
|
2021 |
|
Change in +/–% |
|
+/–% adjusted 1) |
|
+/–% organic 2) |
|
Order intake |
|
709.1 |
|
626.8 |
|
13.1 |
|
14.0 |
|
13.1 |
|
Order intake gross margin |
|
31.1% |
|
30.8% |
|
|
|
|
|
|
|
Order backlog as of June 30 / December 31 |
|
877.3 |
|
811.5 |
|
8.1 |
|
|
|
|
|
Sales |
|
631.9 |
|
663.9 |
|
–4.8 |
|
–4.4 |
|
–5.1 |
|
EBIT 3) |
|
3.7 |
|
14.8 |
|
–75.2 |
|
|
|
|
|
Operational profit |
|
33.7 |
|
33.2 |
|
1.4 |
|
1.0 |
|
2.9 |
|
Operational profitability |
|
5.3% |
|
5.0% |
|
|
|
|
|
|
|
Employees (number of full-time equivalents) as of June 30 / December 31 |
|
5’229 |
|
5’325 |
|
–1.8 |
|
|
|
|
1) Adjusted for currency effects.
2) Adjusted for acquisition and currency effects.
3) Impacted by write-offs related to Russia and Poland.
Continued strong order growth
Orders continued the strong trajectory that was established in the first quarter of this year, despite a 90% drop in business in Russia. Orders for the first half of the year rose 14.0%, driven by increases in all business units. Energy and Industry saw particularly strong growth, buoyed by post-pandemic high demand and global energy security concerns.
Order intake by segment
H1 2022
Order intake by region
H1 2022
Sales and profitability
Sales were impacted by significant supply chain difficulties, mainly related to ongoing lockdowns in China and exacerbated by the war in Ukraine, as well as some delayed projects. Sales in the Flow Equipment division therefore fell by –4.4%. Despite the decline in sales, profitability increased by 30 basis points to 5.3% as cost-efficiency and savings measures implemented last year continued to take effect.