The Sulzer mechanical engineering group has revised its order expectations downwards for 2002, blaming insecurity in the markets.

The group, which is based in Winterthur, said in a statement on Thursday that orders for the first six months were some three per cent down on last year's figure, totalling SFr1.013 billion ($700 million).

Order intake for the year as a whole is expected to match that of 2001.

The company said that the "slow development" was due to the ongoing insecurity in many market areas, a situation that it did not expect to change significantly before the end of the year.

However, Sulzer spokesman Daniel Wirz said the group had not altered its outlook for earnings and sales for 2002. The company is predicting higher sales and operating earnings.

Fundamental restructuring

Earlier this year, Sulzer completed the most fundamental restructuring since its founding in 1834, splitting from its medical technology unit, Sulzer Medica (now Centerpulse).

The new Sulzer is now a purely industrial corporation founded on the core businesses of Sulzer Metco (coating technology and services), Sulzer Turbomachinery Services, Sulzer Pumps and Sulzer Chemtech (process components and services).

It has high expectations for a venture division called Sulzer Hexis, which is working on energy-efficient home heat and power systems.

Sulzer has reported that annual sales in these core businesses totalled SFr1.875 billion last year.

The company plans to increase annual sales to SFr3 billion by 2004/2005.

swissinfo with agencies

In compliance with the JTI standards

More: SWI swissinfo.ch certified by the Journalism Trust Initiative