Sulzer makes less profit

For once, Sulzer’s figures are only limitedly comparable to the previous year. In addition to the abandonment of the business in Russia and Ukraine and the closure of the business in Poland, the split of Medmix in the fall of 2021 added a distorting effect. The figures therefore relate to ongoing operations.

Order intake rose 9.1 percent to francs 3.43 billion, as the company announced on Monday. Sales were 3.18 billion, a small increase of only 1.8 percent, but exceeded the October forecast for stable sales. According to Sulzer, this is a solid result, given the ongoing restrictions in the supply chain and the large number of temporary corona-related plant closures in China.

In particular, the Flow Equipment (+8.9%) and Chemtech (+22.5%) divisions increased their order intake significantly, while the service business (+1.6%) grew slightly.

Suzanne Thoma, Chairman and CEO since October, is pleased with what has been achieved: “This tangible result underlines our resilience in a market environment characterized by geopolitical tensions and uncertainties.”

When it comes to profit, a different picture emerges. Operating profit (EBITDA) rose 8.6 percent to 317.6 million Swiss francs, with the corresponding margin increasing 70 basis points to 10.0 percent. Net profit, on the other hand, fell by around 80 percent to 28.0 million percent due to the aforementioned charge-off. Excluding these one-time items, net income was $213.1 million, up 15% year on year.

The dividend should still hold steady at CHF 3.50. Sulzer sees this as “proof of our confidence in our future performance”. Sulzer did not meet analysts’ expectations in terms of net income alone.

For fiscal year 2023, Sulzer expects a currency-adjusted, organic increase in order intake of 3 to 6 percent and sales of 7 to 9 percent, and an EBITA margin of over 10 percent. Net income should also be significantly higher, as negative one-off effects on net income will no longer hold.

(SDA)

Source :Blick