KSB reports growth in emerging economies and in its general business
The KSB Group increased its order intake by 6.4 per¬cent in the first half of the year to € 1,067.6 million, as shown in its half-year financial report published today. The pump and valve manufacturer profited from a rebound in its general business with standard products, as well as from a number of major orders, including projects for water supply and water treatment plants. Overall, however, the project business was weaker than the general business. This affected, for example, business with high-pressure pumps for power stations. Investments in this area remained influenced by the fact that the financial crisis had led customers to shelve plans for new plants.
In terms of sales revenue, KSB managed to exceed the pre-crisis level in the first six months of the year. At € 970.5 million, the Group's sales revenue for pumps, valves and services was up 6.1 percent. The strongest absolute and percentage growth was posted by companies in the Region Asia/Pacific with an increase of 29.0 percent. Sales revenue growth was particularly strong in the Group companies in China and India, where KSB operates a number of plants.
The first-time consolidation of ten small companies contributed to the growth in order intake and sales revenue. These recorded an order intake of € 28.3 million and sales revenue of € 27.2 million.
At € 50.0 million, mid-year consolidated earnings before taxes were slightly up on the comparative prior-year figure (€ 49.0 million). For the full year, KSB continues to aim for consolidated earnings on a par with those in 2010, although the second half of the year may see a negative impact on earnings due to a possible slowdown in the global economy and result¬ing decline in the expected business volume.
In the first half of the year, the Group built on its position by taking over Seil Seres Co. Ltd., a South Korean company. KSB is now able to offer package solutions with different types of valves as well as remote monitoring and control devices for equipping new liquefied gas tankers. In addition, KSB established subsidiaries in Peru and Slovenia. On 30 June 2011, the Group counted 15,434 employees, including the staff of the newly consolidated companies, 6.6 percent more than a year before.
Note: The complete half-year financial report is available to download at "Investor Relations".