Sulzer posts positive order-book outlook
17 Nov 2008
Winterthur, Switzerland - Sulzer has reported a positive outlook for the full year 2008 following a 13% rise in order intake for the first nine months of the year. The increase, it said, was driven by Sulzer Pumps, which achieved strong double-digit growth in the first three quarters of 2008.
Recent successes include a 10-year procurement deal with Saudi Aramco, covering the strategic supply of products, system solutions and services for Aramco's upstream and downstream projects in the oil and gas market.
"Increasing uncertainties in the general financial and economic environment have not yet affected Sulzer significantly. The activity level in most of Sulzer's markets remained positive, particularly in the oil and gas (upstream) and power generation markets," the Swiss group stated.
According to Sulzer, the hydrocarbon processing industry (oil and gas, downstream) remained generally stable at high levels, with signs of decreasing future project activity. The aviation segment showed some recent weakening in North America, whereas the pulp and paper segment remained soft. The automotive market displayed a high demand for Sulzer¹s innovative applications.
Sulzer noted significant growth in the emerging regions continued, in particular Asia, the Middle East, Africa, and South America. Meanwhile, it said, Europe was stable, though North American markets had begun to show signs of weakening.
The group's Sulzer Pumps division increased its order intake bt 27% to CHF1877.0 million in the first ninie months of 2008. The power generation and the oil and gas segments were strong drivers of growth, while the hydrocarbon processing industry remained active.
"Demand was encouraging, particularly in emerging regions. As in recent years, the new equipment orders outperformed the service business," said Sulzer. The growth was supported by major projects with long lead times in the first nine months; it is unlikely that these large project volumes will remain at the same level. For the full year 2008, the division expects to clearly exceed the order intake level of the previous year."
Among the group's other divisions, Sulzer Chemtech posted a drop in order intake of 7.2% to CHF642.4 million expects orders for 2008 to come in below the previous year's figure. The hydrocarbon processing industry remained active, though slowing, while the division noted strong activity in China, India, and the Middle East.Looking ahead, Sulzer said the oil and gas upstream and the power generation segment are expected to continue at high activity levels. The hydrocarbon processing industry is expected to show lower activity levels in the future. However, it added that the global pulp and paper market and the aviation industry in North America indicate a decrease in activities.
