Swiss engineering company Sulzer AG (SUN.EB) doesn't expect its late-cycle business, which includes its main pump division, to recover before early next year, chief executive Ton Buechner said Thursday.

Still, he was cautiously optimistic about orders intake for the group as a whole.

"As a company I expect our order intake to be slightly better than last year, in single digit percentage points," Buechner told Dow Jones Newswires in an interview.

He said early cycle business--which includes metal coatings and chemical technology--had seen an earlier recovery, but was now leveling off.

But he doesn't expect an improvement in new orders in late cycle business--which involves Sulzer pumps--until the beginning of next year.

New pump orders were down 4.6% to CHF1.22 billion from CHF1.28 in the first nine months of 2010.

"Before our customers build refineries and power plants, they want a bit of visibility themselves and at the moment they are a bit unsure themselves of the economic recovery," said Buechner.

Sulzer's competitiveness wasn't affected by the strength of the Swiss franc, but the company would be significantly affected when profits are translated into francs from US dollars and euros.

It faces a "double whammy" because around 60% of its business is in both currencies, Buechner said.

"In the fourth quarter the low dollar will have a significant effect," Buechner said. "In the year to date it has had a noticeable, but not huge effect."

Sulzer has around CHF1 billion for acquisitions in the next year. Buechner wouldn't reveal targets but said it was continuing to look at companies around the world and for all of its divisions.

The firm is particularly looking at emerging markets, but is finding it hard to find companies who want to sell.

The integration of U.K. repair and maintenance company Dowding and Mills, which was bought in June, is going well and is adding to Sulzer's sales.

"The first common projects are coming out of this acquisition and lots of exciting ones in the system," said Buechner.

For the rest of the year, Sulzer expects sales of around CHF100 million from Dowding and Mills.

-By John Revill, Dow Jones Newswires; +41 43 443 8047; john.revill@dowjones.com