Sulzer profit takes a tumble
The Sulzer industrial group has reported that net income for 2003 fell to SFr41 million ($31.62 million), half the previous year’s figure.
Sulzer, which produces machines and production systems for the aerospace, water and energy industries, said the drop in profit had been expected.
In a statement, Sulzer commented that its 2002 results had been boosted by significant contributions from real estate sales.
It said last year’s figure was dented by one-off exceptional expenses of SFr23 million for restructuring at Sulzer Pumps.
Sulzer added that the comparatively low income for the year did not reflect accurately business development in 2003.
Sales in 2003 were SFr1.83 billion - six per cent down on the 2002 figure - with operating profit before amortisation of SFr89 million, a fall of 40 per cent.
Better than expected
The results were significantly better than expected. Analysts had forecast a net profit of about SFr27 million.
The group, which is based in Winterthur, said that it expected a “positive development” in order intake over the coming months.
Sulzer said that the Asian markets were likely to remain buoyant, while the North American and the European markets should recover slowly.
It commented that the high level of order backlog at the end of 2003 of SFr675 million was a good sign for future sales.
Sulzer announced last week that its chief executive, Fred Kindle, was moving to head the ABB group. A successor would be named by mid-April, said the company.
swissinfo with agencies
The Sulzer corporation made a profit of SFr41 million in 2003, 51 per cent less than in the previous year.
The company commented that this was not particularly representative of business development in 2003.
Sulzer said its core divisions expected to increase operating income, which would have a positive impact on the corporation’s net income.
The board of directors is to propose a dividend of SFr6.
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