Flow: Strong operational profitability
Note: Unless otherwise indicated, changes from the previous year are based on organic figures (adjusted for currency effects and acquisitions, divestitures/deconsolidations).
Following a high baseline in the first half of 2023 (2023: 25.1%), order intake for the Flow division increased by 6.3% in the first half of 2024. This was mainly supported by solid growth in Water and Industrial of 10.7%, with Energy and Infrastructure recording an increase of 1.3% after receiving several larger orders in 2023. Sales for the Flow division in H1 2024 increased by 11.2% to CHF 712.1 million, supported by Energy and Infrastructure. Operational profitability rose by 250 basis points year-on-year, reflecting ongoing improved operational excellence through a rigorous focus on all value streams as well as strict cost discipline. The division continues to focus on operational efficiency and green transitioning to ensure future energy and water security.
Strong momentum in growing markets
The Flow division continues to capture growth opportunities in the energy, water and industrial segments, where it is supporting sustainable economic growth by driving efficiencies and circularity.
After years of testing and development, Flow is demonstrating its profound know-how and industry leadership through its collaboration with TechnipFMC in developing new subsea CO2 pump solutions for new technologies. Petrobras’ HISEP® technology, a revolutionary high-pressure separation technology, enables the separation of CO2-rich natural gas from oil at the seabed. This remarkable new technology offers significant energy efficiencies, while driving cleaner energy and profitable growth.
Similarly, the division’s expertise is making a big impact in the water segment, where its energy-efficient flow technologies are supporting the world’s largest water treatment facility in Egypt. Boasting a daily capacity of 7.5 million cubic meters, the New Delta Treatment Plant relies on Sulzer’s integrated solutions and expertise to treat agricultural drainage water and wastewater that will be re-used to cultivate arable land and promote food security.
Key figures Flow (January 1 – June 30)
|
millions of CHF |
|
2024 |
|
2023 |
|
Change in +/–% |
|
+/–% adjusted 1) |
|
+/–% organic 2) |
|
Order intake |
|
848.0 |
|
824.8 |
|
2.8 |
|
6.3 |
|
6.3 |
|
Order intake gross margin |
|
30.1% |
|
28.7% |
|
|
|
|
|
|
|
Order backlog as of June 30 / December 31 |
|
1’052.0 |
|
878.3 |
|
19.8 |
|
|
|
|
|
Sales |
|
712.1 |
|
662.5 |
|
7.5 |
|
11.3 |
|
11.2 |
|
EBIT |
|
56.4 |
|
28.4 |
|
98.3 |
|
|
|
|
|
Operational profit |
|
67.8 |
|
46.4 |
|
46.1 |
|
53.0 |
|
53.1 |
|
Operational profitability |
|
9.5% |
|
7.0% |
|
|
|
|
|
|
|
Employees (number of full-time equivalents) as of June 30 / December 31 |
|
5’454 |
|
5’465 |
|
–0.2 |
|
|
|
|
1) Adjusted for currency effects.
2) Adjusted for acquisition, divestiture/deconsolidation and currency effects.
Order intake
Order intake for the Flow division increased by 6.3% in the first half of 2024, following a high comparable baseline in the first half of 2023 (2023: 25.1%). This was mainly supported by solid growth in Water and Industrial of 10.7%, with Energy and Infrastructure recording an increase of 1.3% after receiving several larger orders in 2023.
Order intake by segment
H1 2024
Order intake by region
H1 2024
Sales and profitability
Sales increased by 11.2% across all business units, supported by Energy and Infrastructure. Operational profitability increased by 250 basis points year-on-year to 9.5%, mainly driven by an increased focus on pricing and cost management.