Sulzer, the Swiss industrial-machinery maker, has increased its full-year guidance due to expectations of robust demand and its strong position in growing markets. This positive news has led to a boost in the company's shares, which are currently trading 3.8% higher at CHF84.20.
Upward Revisions
Sulzer now predicts organic sales growth of between 11% and 13%, up from its previous forecast of 7% to 9%. Additionally, the company anticipates a 10% to 14% organic increase in orders, compared to the previous outlook of 3% to 6%. Operational profitability is also expected to rise to around 11%, up from the earlier expectation of 10%.
Impressive First-Half Performance
Sulzer witnessed a significant turnaround in its financial performance in the first half of the year. Net profit for this period reached 103.9 million Swiss francs ($119.5 million), compared to a loss of CHF48.3 million during the same period last year. Sales also experienced growth, rising from CHF1.52 billion to CHF1.60 billion. Operating profit saw a substantial improvement as well, reaching CHF151.5 million compared to a loss of CHF25.5 million.
Strong Sales Growth
Sales growth was driven primarily by the water segment and experienced positive results across all regions. Notably, the Americas showed the largest increase.
Overcoming Currency Challenges
Despite facing challenges related to currency-exchange rates, Sulzer managed to report a higher order intake and increase its order backlog. The current backlog stands at CHF2.14 billion, compared to CHF1.84 billion at the end of last year.
For more information, visit www.sulzer.com
