ZURICH, Aug 22 (Reuters) - Swiss engineering group Sulzer raised its
mid-range margin targets on Friday when it posted a 20 percent rise in
first-half net profit as the group benefits from upbeat demand in the oil and
gas market.
Net profit rose to 158.2 million Swiss francs ($144.9 million), ahead of the
average estimate of 150 million francs in a Reuters survey of eight analysts.
Sulzer, which makes pumps for the oil and gas industry as well as surface
coatings for jet engines, said it expected strong demand for the rest of the
year despite uncertainties in the general economic environment.
"Growth is supported in the oil and gas market by the high oil price. High
project activity in the power generation market, in particular in China, Europe,
and the USA, is expected to continue," said the group, which competes with
America's Flowserve .
Operating profit rose 28 percent to 227.4 million francs on sales up 6.3
percent at 1.758 billion francs.
The group, in which Russian billionaire Viktor Vekselberg holds a roughly 30
percent stake, has benefited from increased investment to replace ageing oil
field equipment as well as investment in the power generation industry.
Sulzer hiked the mid-range return on sales target for Sulzer Pumps to above
12 percent from above 11 percent and for Sulzer Chemtech to above 16 percent
from 15 percent.
The group also raised its combined divisional return on sales target to
above 12 percent from above 11 percent, while the combined target for return on
capital employed was raised to to above 25 percent from above 20 percent.
In July, the group posted a 6-percent rise in first-half orders to 2.26
billion francs.
For the Sulzer statement, click on:
http://www.sulzer.com/en/Portaldata/7/Resources/03_newsmedia/mediareleases/MM_080822_MYR_08_e.pdf
(Reporting by Katie Reid;; Editing by Paul Bolding) ($1=1.092 Swiss Franc)
Keywords: SULZER/
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