Orders up at Sulzer

Sulzer's new structure means it is better protected from an economic slowdown Keystone

New orders for Swiss manufacturing group Sulzer's core businesses rose 25 per cent in the first nine months of the year to SFr1.47 billion ($901.8 million).

All four businesses that Sulzer relies on during the switch to high technology from heavy manufacturing posted double-digit growth rates.

The order numbers were roughly in line with market expectations after it spun off its 74 per cent stake in Sulzer Medica to shareholders in July. Medica figures are no longer consolidated in Sulzer accounts.

“Any medium-term effects on Sulzer of the economic downswing trends are not clear at the present time. However, the corporate business portfolio is now more recession-resistant than prior to restructuring,” the company said in a statement on Thursday.

Orders advanced 10 per cent when adjusted to strip out the impact of acquisitions, divestments and exchange rates.

In the statement released on Thursday, Sulzer said it expected to reach its business volume and profitability goals for 2001, but said there may be some delay in reaching medium-term targets if the global economy does not improve in 2002.

In July, Sulzer reported a 39 per cent rise in new orders at its core business and gave an upbeat outlook for the year.

In August, after first-half net income swung to a SFr120 million profit from a SFr11 million loss, chief executive Fred Kindle said full-year operating profit before exceptional items would clearly exceed SFr100 million. It stood at SFr33 million at the half-year stage.

Sulzer gave no profit figures in Thursday’s statement.

swissinfo with agencies