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Sulzer AG, Switzerland
COMPANY WATCH
SPX Flow Inc, USA
Sulzer AG, Switzerland
Key Figures (US$ million) Fourth quarter ended 31.12 2016 2015
Revenues Of Which: Food & Beverage Power & Energy Industrial
495.4 612.7
Cost of Products Sold
342.9
417.9
Gross Profit
152.5
194.8
Operating Income/(Loss)
9.1
40.5
Net Income/(Loss)
7.6
21.8
182.5 219.0 129.9 194.2 183.0 199.5
Year ended 31.12
2016 2015
Revenues Of Which: Food & Beverage Power & Energy Industrial
1996.0 2388.5
Cost of Products Sold
1371.4
1596.3
624.6
792.2
Operating Income/(Loss)
(385.1)
145.5
Net Income/(Loss)
(381.0)
87.4
Gross Profit
728.3 869.8 562.7 750.2 705.0 768.5
Key Figures (CHF million) Year ended 31.12 2016 2015
Order Intake Of Which: Pumps Equipment Rotating Equipment Services
2797.5
2895.8
1401.7 661.1
1500.8 698.2
Sales Of Which: Pumps Equipment Rotating Equipment Services
2876.7 2971.0 1503.5 666.8
1621.0 693.2
Cost of Goods Sold
1997.3
2060.9
Gross Profit
879.4
910.1
Selling and Distribution Expenses
309.2
303.9
General and Administrative Expenses 324.6
348.2
R&D Expenses
71.4
73.4
115.3
120.9
7.1 57.3
62.8 51.4
Income before Income Tax Expenses
95.2
99.9
Net Income
59.0
73.9
Operating Income Of Which: Pumps Equipment Rotating Equipment Services
COMMENT
COMMENT SPX Flow Inc has posted fourth quarter revenues of US$495.4 million, down 19.1% on a year ago. Organic sales decreased 16.0%, while currency fluctuations negatively impacted revenues by 3.1%. Profit was also down, with operating income slumping 77.5% to US$9.1 million and the net result falling 65.1% to US$7.6 million. For the corresponding full year sales were 16.4% lower at US$2.0 billion, while net profit plummeted from a US$87.4 million gain to a US$381.0 million loss on the back of impairment charges that totalled US$442.2 million. Despite the downturn, Marc
March 2017
Michael, SPX Flow’s president and CEO, said there had been a number of positives over the course of the year including the realisation of US$60 million of year-over-year cost savings. “I’m pleased with the strong effort by our teams across the enterprise to aggressively execute our realignment programme resulting in a reduced cost structure, more flexible footprint and streamlined functional support,” he said. “We have built a solid foundation for success and I firmly believe we are better positioned to more efficiently serve our customers and grow our business going forward.” n www.spxflow.com
Sulzer has posted fiscal 2016 revenues of CHF2.9 billion, down 3.2% on the year earlier. The company’s profitability also dipped on the prior period with operating profit falling 4.6% to CHF115.3 million and net profit attributable to shareholders 20.2% lower at CHF59.0 million. Order intake finished 3.4% lower than the 2015 comparator at CHF2.8 billion. Sulzer attributed the downturn primarily to tough trading conditions in the oil and gas market that, until recent acquisitions, accounted for approximately half of its revenue. Sulzer’s Pumps Equipment division saw sales slip 7.2% to CHF1503.5 million and its operating income decrease 88.7% to CHF7.1 million. Sales in the Rotating Equipment Services segment
were down 3.8% to CHF666.8 million, while operating income increased 11.5% to CHF57.3 million. Sulzer’s CEO Greg PouxGuillaume said that despite the fall in financial indicators there had been a number of positives in the year including savings of CHF88 million from its efficiency programme. “We did well in a challenging year,” he said. “Overall, we beat our guidance on all of the key performance indicators – we fulfilled our promises. There is still a lot to do, but we are heading in the right direction.” Poux-Guillaume added that Sulzer was expecting an upturn in fortunes for fiscal 2017. Including recent acquisitions and adjusted for currency effects, he said order intake was expected to grow by 5–8% and sales by 3–5%. n www.sulzer.com
Pump Industry Analyst
9
SPX Flow Inc, USA
Sulzer AG, Switzerland
Key Figures (US$ million) Fourth quarter ended 31.12 2016 2015
Revenues Of Which: Food & Beverage Power & Energy Industrial
495.4 612.7
Cost of Products Sold
342.9
417.9
Gross Profit
152.5
194.8
Operating Income/(Loss)
9.1
40.5
Net Income/(Loss)
7.6
21.8
182.5 219.0 129.9 194.2 183.0 199.5
Year ended 31.12
2016 2015
Revenues Of Which: Food & Beverage Power & Energy Industrial
1996.0 2388.5
Cost of Products Sold
1371.4
1596.3
624.6
792.2
Operating Income/(Loss)
(385.1)
145.5
Net Income/(Loss)
(381.0)
87.4
Gross Profit
728.3 869.8 562.7 750.2 705.0 768.5
Key Figures (CHF million) Year ended 31.12 2016 2015
Order Intake Of Which: Pumps Equipment Rotating Equipment Services
2797.5
2895.8
1401.7 661.1
1500.8 698.2
Sales Of Which: Pumps Equipment Rotating Equipment Services
2876.7 2971.0 1503.5 666.8
1621.0 693.2
Cost of Goods Sold
1997.3
2060.9
Gross Profit
879.4
910.1
Selling and Distribution Expenses
309.2
303.9
General and Administrative Expenses 324.6
348.2
R&D Expenses
71.4
73.4
115.3
120.9
7.1 57.3
62.8 51.4
Income before Income Tax Expenses
95.2
99.9
Net Income
59.0
73.9
Operating Income Of Which: Pumps Equipment Rotating Equipment Services
COMMENT
COMMENT SPX Flow Inc has posted fourth quarter revenues of US$495.4 million, down 19.1% on a year ago. Organic sales decreased 16.0%, while currency fluctuations negatively impacted revenues by 3.1%. Profit was also down, with operating income slumping 77.5% to US$9.1 million and the net result falling 65.1% to US$7.6 million. For the corresponding full year sales were 16.4% lower at US$2.0 billion, while net profit plummeted from a US$87.4 million gain to a US$381.0 million loss on the back of impairment charges that totalled US$442.2 million. Despite the downturn, Marc
March 2017
Michael, SPX Flow’s president and CEO, said there had been a number of positives over the course of the year including the realisation of US$60 million of year-over-year cost savings. “I’m pleased with the strong effort by our teams across the enterprise to aggressively execute our realignment programme resulting in a reduced cost structure, more flexible footprint and streamlined functional support,” he said. “We have built a solid foundation for success and I firmly believe we are better positioned to more efficiently serve our customers and grow our business going forward.” n www.spxflow.com
Sulzer has posted fiscal 2016 revenues of CHF2.9 billion, down 3.2% on the year earlier. The company’s profitability also dipped on the prior period with operating profit falling 4.6% to CHF115.3 million and net profit attributable to shareholders 20.2% lower at CHF59.0 million. Order intake finished 3.4% lower than the 2015 comparator at CHF2.8 billion. Sulzer attributed the downturn primarily to tough trading conditions in the oil and gas market that, until recent acquisitions, accounted for approximately half of its revenue. Sulzer’s Pumps Equipment division saw sales slip 7.2% to CHF1503.5 million and its operating income decrease 88.7% to CHF7.1 million. Sales in the Rotating Equipment Services segment
were down 3.8% to CHF666.8 million, while operating income increased 11.5% to CHF57.3 million. Sulzer’s CEO Greg PouxGuillaume said that despite the fall in financial indicators there had been a number of positives in the year including savings of CHF88 million from its efficiency programme. “We did well in a challenging year,” he said. “Overall, we beat our guidance on all of the key performance indicators – we fulfilled our promises. There is still a lot to do, but we are heading in the right direction.” Poux-Guillaume added that Sulzer was expecting an upturn in fortunes for fiscal 2017. Including recent acquisitions and adjusted for currency effects, he said order intake was expected to grow by 5–8% and sales by 3–5%. n www.sulzer.com
Pump Industry Analyst
9