– Business review – Services
Rising orders and sales, expanding Services footprint
Note: If not otherwise indicated, changes from the previous year are based on currency-adjusted figures.
In the first half of 2022, the Services division saw order intake rise by 2.7% compared with the same period last year, while sales increased 2.8%. Robust order activity in the Americas and Asia-Pacific regions was able to more than compensate for the decrease in business in Russia. The division continues to invest in its service offering to widen its geographical and technical reach, recently opening a brand-new service center in Vadodara, India.
Strengthening offering and geographical footprint
The division continues to pursue its strategy of strengthening and investing in its offerings. In the first half of the year, Sulzer expanded its footprint in India with a state-of-the-art new service center in Vadodara, Gujarat. The facility has widened the availability of high-quality services in India and is equipped with state-of-the-art machinery. The center will offer repairs, upgrades, retrofits and parts manufacturing for a wide range of equipment including pumps, steam turbines, compressors and expanders.
Pumps Services is also making progress in enhancing the availability of retrofit solutions in more locations. Retrofits are a key focus area for the Services division. They offer our customers the chance to make significant efficiency gains while minimizing waste and extending the life of their existing equipment. In addition, since the start of the year, around 500 pumps have been added to our BLUE BOX digital solution that allows our customers to optimize the life cycle costs of their equipment and maximize efficiency. Meanwhile, Turbo Services continues to leverage its skills and know-how in repairing and refurbishing steam turbines and compressors across all regions.
Key figures Services (January 1 – June 30)
|
millions of CHF |
|
2022 |
|
2021 |
|
Change in +/–% |
|
+/–% adjusted 1) |
|
+/–% organic 2) |
|
Order intake |
|
587.9 |
|
570.8 |
|
3.0 |
|
2.7 |
|
2.4 |
|
Order intake gross margin |
|
37.3% |
|
37.3% |
|
|
|
|
|
|
|
Order backlog as of June 30 / December 31 |
|
499.1 |
|
479.5 |
|
4.1 |
|
|
|
|
|
Sales |
|
542.8 |
|
525.5 |
|
3.3 |
|
2.8 |
|
2.4 |
|
EBIT 3) |
|
–19.0 |
|
66.3 |
|
n/a |
|
|
|
|
|
Operational profit |
|
72.2 |
|
70.3 |
|
2.7 |
|
1.5 |
|
0.1 |
|
Operational profitability |
|
13.3% |
|
13.4% |
|
|
|
|
|
|
|
Employees (number of full-time equivalents) as of June 30 / December 31 |
|
4’446 |
|
4’571 |
|
–2.8 |
|
|
|
|
1) Adjusted for currency effects.
2) Adjusted for acquisition and currency effects.
3) Impacted by write-offs related to Russia and Poland.
Positive order development
The Services division grew order intake by 2.7% year-on-year. The Services business was particularly impacted by Sulzer’s exit from the Russian market, but the team was able to more than compensate for the decrease through Services’ diversified business model and global footprint. The Americas and Asia-Pacific regions both delivered a solid performance with double-digit order growth.
Order intake by market segment
H1 2022
Order intake by region
H1 2022
Rising sales
Sales in the Services division grew by 2.8% compared with the first half of 2021. Strong business activity in the Americas region compensated here as well for reduced sales in Europe, the Middle East and Africa. Operational profitability remained flat, despite inflationary pressures and the impact of Russia.