Bill Gross warns on gold momentum as regional bank stocks tumble
Investing.com -- Sulzer AG (SIX:SUN) reported mixed third-quarter order intake results, showing a return to organic growth of 2% despite missing consensus expectations overall as the company confirmed its full-year guidance.
The Swiss industrial engineering firm saw group orders decline 5% year-over-year to CHF817 million, falling 6% below consensus estimates. The company faced CHF58 million in foreign exchange headwinds, with orders growing 2% in local currency terms.
Sulzer’s performance was primarily hampered by negative conditions in China and shifts in large-scale projects, which particularly affected its Chemtech division, where orders dropped 20% organically, and Flow Equipment segment, which saw a 1% local currency decline.
The Services business remained a bright spot, posting a strong 16% organic jump in orders (9% reported), aligning with consensus expectations. This growth was driven by reduced equipment spending, with spare parts for pumps and turbo services providing high-margin opportunities.
Flow Equipment orders remained subdued amid continued capital expenditure hesitance, declining 1% organically (7% reported) and falling 6% short of market expectations. Solid demand in Water end-markets was insufficient to offset weakness in Refining, Biofuel, and Pulp & Paper segments.
The company’s backlog stood at CHF2.3 billion, representing a 4% year-over-year decrease and a 1% quarter-over-quarter decline.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.