Burckhardt Gains Most in Seven Months on Order Backlog

Burckhardt Compression Holding AG (BCHN) gained the most in seven months after the Swiss compressor maker said new order growth may exceed 10 percent this year.

The stock rose as much as 11 percent, the biggest intraday gain since Oct. 19. The shares traded 9.5 percent higher at 231.9 Swiss francs at 12:59 p.m. in Zurich.

Sales will be “substantially” higher in the 12 months through March 2013 as the Winterthur-based company clears a backlog of contracts, Chief Executive Officer Marcel Pawlicek said at a presentation. New orders will probably rise in a “high single-digit to double digit” range, he said. Net income rose 12 percent to 50.5 million francs ($52 million) in the past fiscal year at the company, which sells compressors to Exxon Mobil Corp. (XOM), Royal Dutch Shell Plc (RDSA) and China Petroleum & Chemical Corp. (600028)

Burckhardt gave discounts to gain more orders to offset the stronger franc, which gained 16 percent against the euro in the past two years. That will lead to a “somewhat lower” operating profit margin this year, the company said.

New refinery projects in Asia and the increasing use of natural gas are driving demand for compressors, Pawlicek said. Burckhardt is the world’s second-largest maker of reciprocating compressors for the oil and gas industries after Dresser-Rand Group Inc. (DRC) in the U.S., Pawlicek said, adding that the top four companies share as much as 70 percent of the market.

To contact the reporter on this story: Patrick Winters in Zurich at pwinters3@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net

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