Sulzer releases 2018 performance results

Orders were up by 8.4% organically and by 12.5% including acquisitions. Sales showed an organic increase of 7.8% and of 11.9% including acquisitions. The higher volumes, together with a more efficient cost structure resulted in an increase of operational profit to CHF322.2 million, up by 18.1% organically and by 26.7% including acquisitions. Profitability grew to 9.5% from 8.4% in the previous year. Free cash flow grew by CHF47 million to CHF173.9 million on higher operating income. Sulzer will propose an unchanged ordinary dividend of CHF3.50 at the Annual General Meeting.

Outlook for 2019

Sulzer expects the positive momentum in the oil and gas market to continue in 2019. All other markets are also expected to grow, with the continued exception of power. Sulzer’s early indicators do not show signs of an impending slowdown of the economy in our major markets. The company, therefore, expects to continue its trend of organic growth and improved profitability.

Sulzer has delivered cumulative SFP savings to date of CHF230 million and is increasing its target by CHF10 million, which will be achieved in 2019.

For the full year 2019, adjusted for currency effects, order intake is expected to grow organically by 2% to 5% and sales to grow organically by 3% to 5%. Sulzer expects to reach an opEBITA margin of around 10%.

Read the article online at: https://www.worldfertilizer.com/special-reports/14022019/sulzer-releases-2018--performance-results/