Sulzer recently released its performance report for the first three quarters of 2022. The data showed that the order volume in the first three quarters increased significantly (organic growth of 10.0%) compared to the same period last year, reaching 2,586.2 billion francs (19.5 billion yuan). Orders for the third quarter increased 8.0 percent (on a currency-adjusted basis) and 8.3 percent organically compared to the same period last year, driven by continued strong growth in the energy and industrial segment of the fluid equipment business, as well as the renewable energy and water segment of the chemical technology business.
Orders for the fluid equipment business grew 12.1% on a currency-adjusted basis to 1.07051 billion francs (RMB8.1 billion) in the first three quarters and 8.6% in the third quarter, with all three segments contributing to the growth. In terms of order volume, the water sector is currently the largest piece of the fluid equipment business line, up 6 per cent in currency adjusted terms, driven by the municipal sewage market. The industrials and energy sectors did well, up 12.9 per cent and 19.7 per cent respectively (adjusted for currency). Increased bidding activity and continued order selectivity drove earnings growth.
Orders for the services business rose 2.8 percent on a currency-adjusted basis to 894 million francs (6.7 billion yuan), compared with 3.1 percent growth in the third quarter. Sulzer's decision to withdraw from the Russian market has hurt order growth.
The chemical technology business continued its strong growth in the first nine months, up 19.3% on a currency-adjusted basis to 621.6m francs (4.7 billion yuan), while its renewable energy business saw strong growth, up 40.2% on a currency-adjusted basis.
New president of fluid equipment business
Sulzer's board of directors is pleased to announce that it will assume the role of head of the fluid equipment business effective January 1, 2023. Jan has a rich track record of success in international operations -- he has been CEO of ThyssenKrupp Mining Technologies since 2019 and has successfully turned the business from loss to profit.
2022 outlook
Despite the uncertainties and challenges in the global economy, Sulzer expects its market to maintain strong growth. Sulzer raised its guidance for order growth to 6-8% from 3-5% previously. Sales are now expected to remain flat compared to FY2021 (up 2-4% previously, excluding the impact of Russia's exit), with some 2022 sales calculations likely to be deferred to 2023 due to China controls, some component shortages and project delays. Operating margins of close to 10 per cent were confirmed.
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