Midyear Results 2017
Applicator Systems
As previously announced, Sulzer established a fourth division called Applicator Systems (APS) at the beginning of 2017. In the first half of 2017, APS reported growing order intake and sales. Operational EBITA increased compared with the same period of the previous year.
New division Applicator Systems
On January 1, 2017, Sulzer changed its reporting structure for increased transparency and customer focus: The combination of the Sulzer Mixpac Systems (SMS) business unit and the recently acquired Geka and PC Cox businesses are now being reported as the new Applicator Systems (APS) division. APS offers a global platform for high-precision plastic molding, assembly, decoration, and filling technologies for mixing and applicator solutions. The division serves customers in the dental, industrial adhesives, and beauty segments.
In the second quarter of the year, Sulzer signed a binding agreement to acquire Simcro, adding animal health as a new, attractive market segment to the APS division. Simcro, headquartered in Hamilton, New Zealand, is the market leader for veterinary devices such as injectors and applicators for livestock and companion animals. Simcro is expected to achieve revenues of CHF 35 million in 2017.
Growing order intake and sales
By nature of the business, there is little difference between order intake and sales at APS, and focus is on sales. Organic sales increased by a currency-adjusted 6.7% in the first half of 2017. The acquisitions of Geka and PC Cox contributed an additional CHF 98.1 million in sales, boosting the growth rate to 100% on a currency-adjusted basis. Organic growth was driven by the industrial adhesives and dental segments. All regions contributed to growth.
Higher operational EBITA
Operational EBITA increased to CHF 45.1 million in the first half of 2017 from CHF 29.7 million in the same period of the previous year, mainly due to acquisitions. Operational ROSA is not comparable with the first half of 2016 because of the impact of the Geka acquisition which was closed in the second half of 2016 and is therefore not included in the comparable base.
If not otherwise indicated, changes compared with the previous year are based on currency-adjusted figures.
EBIT: Operating income
opEBITA: Operating income before restructuring, amortization, impairments, and non-operational items
opROSA: Return on sales before restructuring, amortization, impairments, and non-operational items (opEBITA/sales)