Sulzer H1 orders rise, sees full recovery in 2021 after pandemic
Adds details, CEO quote
July 24 (Reuters) - Swiss industrial group Sulzer SUN.S expects to return to pre-pandemic profitability in 2021 as it reported first-half order growth on Friday, citing strong performance at its pump and rotating equipment businesses.
Coronavirus-related lockdowns have hit industrial companies around the world due to factory closures and as some suppliers found it difficult to transport products to their customers' plants even if they were available.
"We have again proven our resilience, which is based on our broad regional presence and a balance between early and late-cyclical business," Chief Executive Officer Greg Poux-Guillaume said.
Sulzer's orders including acquisitions rose 1.7% in the first half of 2020, above analysts' expectations that had pointed to a loss, and order backlog reached an unprecedented level of almost 2 billion Swiss francs ($2.16 billion) as strong energy-related orders in China, Brazil and the Middle East more than offset low demand in the United States.
The company said it is on track with the structural cost-cutting programme it announced in late April and expects to generate savings of 70 million francs including 50 million francs in 2021.
($1 = 0.9251 Swiss francs)
(Reporting by Zuzanna Szymanska in Gdansk; Editing by Jacqueline Wong and Subhranshu Sahu)
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