In the year of its 150th anniversary, Frankenthal-based pump and valve manufacturer KSB achieved its best financial year in a long time. Despite coronavirus-related site closures in some countries, all key indicators were within the forecast, which was adjusted upwards in the fourth quarter. Order intake rose by € 268.3 million (+ 12.5 %) to € 2,411.7 million (previous year: € 2,143.4 million). Sales revenue also increased significantly by € 135.7 million (+ 6.1 %) to € 2,343.6 million (previous year: € 2,207.9 million). EBIT performed particularly well, doubling from € 70.2 million to € 141.2 million (+ 101.2 %). The return on sales is 6.0 %.
Against the background of an outstanding 2021 financial year with a net profit for the year of € 110.3 million, the Management proposes to the Annual General Meeting to distribute a dividend of € 9.00 as well as an additional anniversary dividend of another € 3.00 per ordinary share.
“The good business performance is based on several factors. There is, on the one hand, the new market-oriented corporate structure introduced as part of CLIMB 21, with a focus on higher-margin standard and KSB SupremeServ business with spare parts and support services. On the other hand, stringent cost management worldwide and the effects of the earnings enhancement programme of the parent company KSB SE & Co. KGaA had an impact. Last but not least, there was additional tailwind from the recovering global economy and customers’ renewed willingness to invest despite the ongoing COVID-19 pandemic,” explains KSB’s CEO Dr Stephan Timmermann.
In addition to larger orders in the standard pumps business segment, which includes Building Services, General Industry, Chemicals and Water, KSB again secured several major orders, for example to equip power stations in China, an irrigation project in Egypt and a mining project in Canada.
All Regions contributed to growth. The companies in Europe, by far the largest Region, which had demonstrated stability in the COVID-19 year 2020, recorded an order intake of € 1,262.2 million (+ 7.6 %) and sales revenue of € 1,261.4 million (+ 2.6 %). The largest percentage growth was posted in the Region Middle East / Africa / Russia. Order intake rose by 27.1 % (+ € 36.5 million) to € 171.3 million and sales revenue by + 11.1 % (+ € 14.7 million) to € 148.0 million. The Region Asia / Pacific also increased its order intake significantly by 17.4 % (+ € 86.1 million) to € 579.8 million and its sales revenue by 14.5 % (+ € 70.5 million) to € 557.4 million. The Region Americas showed a similar performance. Here, order intake grew by 16.5 % (+ € 56.4 million) to € 398.4 million and sales revenue by 5.0 % (+ € 18.1 million) to € 376.7 million.
In the financial year under review, KSB continued to systematically drive forward the realignment of the company towards high-margin markets and the digitalisation of products, services and processes, as defined in the CLIMB 21 strategy project. A total of 25 countries now have online shops with a new, comprehensive sales platform that opens up further sales and customer channels. In addition, KSB again made significant investments (€ 104 million) in the future viability of the company in 2021. The largest individual investment was the capacity expansion completed in 2021 at the US subsidiary GIW, which specialises in products for mining applications.
KSB also supported important sustainability projects. For example, the sites in Concorezzo, Italy, and Pattensen near Hanover, Germany, are the first to be certified climate-neutral, and a new heating system is currently being built at the headquarters in Frankenthal, which will further reduce the company's carbon footprint.
KSB also takes a confident view of the current 2022 financial year and is aiming for a further increase in order intake, sales revenue and earnings. However, the situation remains challenging due to pandemic-related supply bottlenecks and higher material, commodity and energy prices. In addition, the political and military conflicts in the Russia-Ukraine war will impact business.
“A special thanks goes to all our staff. Even in the second year of the COVID-19 pandemic and under difficult conditions, they have shown great commitment and flexibility in helping to achieve this strong performance. Together we will also master the challenges that lie ahead,” says Dr Stephan Timmermann.
Press release: KSB closes 2021 financial year very successfully