Interim report for the period ended 30 September 2012
KSB Group remains on course for growth
In the first nine months of the year, the pump and valve industry continued to feel the reluctance of many customers to realise large-scale engineering projects, and the number of new orders in project business was correspondingly low. Like last year, the general business with standard pumps and valves offered better sales prospects.
|Order intake||€ million||1,699.6||1,564.9||+ 8.6 %|
|Sales revenue||€ million||1,674.9||1,498.3||+ 11.8 %|
|Employees (30 Sept.)||16,136||15,708||+ 2.7 %|
Order intake and sales revenue
Order intake in the Group developed positively despite the difficult market situation. It rose by 8.6 percent to € 1,699.6 million, with all three segments – Pumps, Valves and Service – recording growth.
All three areas achieved double-digit sales revenue growth rates. Overall, the Group’s sales revenue increased by 11.8 percent to € 1,674.9 million. Europe remained the Region with the highest sales revenue, however, companies in the Regions Americas and Asia/Pacific reported higher growth rates and once again increased their share of total consolidated sales revenue.
As far as the order intake and sales revenue figures for the Group are concerned, it should be noted that in 2012 nine smaller subsidiaries were consolidated for the first time. They account for an order intake volume of € 26.7 million and sales revenue of € 25.8 million.
Change in number of employees
The number of employees employed by the Group on 30 September 2012 stood at 16,136, 2.7 percent higher than at the same time last year. The increase of 428 is attributable almost exclusively to the above-mentioned first-time consolidations, which accounted for 422 of the new employees in the Group.
Results of operations and financial position
The growth in sales revenue also increased the Group's earnings before tax (EBT) compared with the comparative three quarters last year. Because of the lower margins in project business, however, the earnings generated by KSB AG – with sales revenue growth of 3.1 percent – were lower than in the same period in 2011.
The Group’s financial position remains solid. This means that the necessary funds for investments and strategic projects can largely be sourced from operating cash flow.
If the general business continues to develop positively in the last quarter, consolidated order intake and sales revenue should be significantly higher compared with the previous year. It would seem that we could come close to the target of € 2.3 billion despite the lower growth in the euro zone.
The trend for the first nine months of the current financial year suggests that earnings before tax (EBT) will increase compared with 2011 (€ 120.5 million). The annual target of € 135 million (2010 level) too is achievable from today’s perspective.
KSB AG’s weaker result will be countered by a cost reduction programme that is already underway and intended to provide savings in structural and material costs. This will only have a marked impact in 2013, however.