Preliminary report on financial year 2016
KSB Group reports preliminary figures
The market weakness in key customer sectors, as well as substantial negative currency exchange effects have affected order intake and sales revenue in the KSB Group. This is reflected in the still provisional figures of the Frankenthal-based pump and valve manufacturer for 2016. At € 2,155.8 million, the volume of orders received was € 105.4 million or 4.7 percent down on the previous year. A particular factor in this respect was weak demand from the energy sector, the chemical industry and shipbuilding.
The consolidated sales revenue fell by € 160.3 million, i.e. 6.9 percent. At the end of the year it stood at € 2,174.6 million, with sales revenue in the Pumps and Valves segments lower than in 2015, while sales revenue for services reached the previous year’s level.
With an efficiency improvement programme launched last year, KSB intends to sustainably improve its cost structure by 2018. The company has introduced measures to reduce its material, staff and overhead costs by € 200 million. The one-off costs associated with these steps reduced the Group’s 2016 earnings. The earnings before taxes (EBT) to be published by KSB in the Annual Report on 30 March will therefore, as announced, be considerably lower than the previous year’s figure.
From a current perspective, the KSB Group is expecting continued subdued development of order intake and sales revenue for 2017, although there are prospects of major orders in the project business. Despite high one-off costs again from the efficiency improvement programme, the consolidated earnings (EBT) are expected to rise in 2017.
Corporate changes will also be on the agenda of the KSB Group in the current year. As proposed by the Board of Management and the Supervisory Board, the Annual General Meeting on 10 May will decide upon a change in the legal form of KSB Aktiengesellschaft. This step is intended to convert the parent company into a partnership limited by shares, which would be managed by a management company under European law (SE).