Mixed bag of results for Sulzer
Swiss technology group Sulzer has revealed a mixed set of results. Net profit at the Winterthur-based company rose 39 per cent over the 1998 figure to SFr254 million. However, operating profit before one-off gains dropped 20 per cent to SFr 309 million.
Swiss technology group Sulzer has revealed a mixed set of results. Net profit at the Winterthur-based company rose 39 per cent over the 1998 figure to SFr254 million. However, operating profit before one-off gains are taken into account dropped 20 per cent to SFr 309 million.
“Sulzer business developed in two opposite directions last year: exceptionally high net income contrasted with high extraordinary charges. Our 1999 result with its special nature cannot disguise the fact that underlying profitability for the year was unsatisfactory,” said chairman Pierre Borgeaud.
Sulzer has been in the throes of a major reorganisation, announced last year, which is costing the group around 2,000 jobs. The company is refocusing its operations on the oil, gas and chemical sectors.
Looking to the future, the company said it has around SFr1 billion to finance select acquisitions in its industrial arm.
“Sulzer Pumps, Sulzer Metco, Sulzer Infra and Turbomachinery will be expanded significantly, from SFr2.4 billion total sales at present to about SFr4 billion in two to three years,” the company said in a statement.
Sulzer Medica, which is 74 per cent owned by Sulzer, continued to thrive last year, with net profit surging to SFr483 million from SFr143 million in 1998. However, most of that gain was due to the sale of its electrophysiology division.
“In 2000, Sulzer Medica will continue to focus on the operational performance of its core businesses, above all the rapid expansion of its spinal implant business … Sulzer Medica expects its sales to increase by above market average growth rates and its return on sales to improve further,” the company statement added.
From staff and wire reports.
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