* Sulzer mulls sale of Metco division
* Net profit falls 23 pct in first half
* Warns on lower full-year profitability
* Shares fall 12 pct
(Adds detail, shares, analyst)
ZURICH, July 23 Swiss machinery manufacturer
Sulzer said on Tuesday it expected lower full-year
profits after its first-half result took a hit from low volumes
and high restructuring costs.
Shares in the company fell 12 percent to 146.5 Swiss francs
by 0710 GMT, having risen 9 percent so far this month.
The 179-year-old firm posted a 23 percent fall in first-half
net profit, after its wastewater business was hit by higher
costs and lower volumes, and demand slowed for electromechanical
services in the United Kingdom and Australia.
Lower profits are forecast for the full year, though slight
growth in order intake and sales is expected, Sulzer said.
Measures to cut costs and boost sales will continue into the
second half of the year, the firm said.
"While Sulzer's order intake showed a recovery from recent
low levels, sales and profitability were slightly
disappointing," said Martin Schwab, an analyst at J. Safra
The company said it was planning to sell its Sulzer Metco
division, mainly active in the automotive and aviation
industries, to concentrate on oil and gas, power and water
markets, areas where the firm sees more promising growth.
The sale would generate additional funds for targeted
acquisitions and further investments aimed at organic growth,
(Reporting by Alice Baghdjian; Editing by David Holmes)