Sharp rise in earnings in the first half of the year
Pump and valve manufacturer KSB increased both order intake and sales revenue in the first six months of the year. The company also more than doubled its consolidated earnings before taxes (EBT) compared with the same period in the previous year. This was communicated by the company in its half-year financial report published today.
The increase in order intake by 7.6 % to € 1,182.0 million in the first six months is primarily due to the good performance in the companies outside Europe. Double-digit percentage growth in orders was reported in each of the Regions Asia / Pacific, Americas and Middle East / Africa. Only the companies in Europe remained below the prior-year level overall, despite a stable order intake for KSB AG.
Due to the weaker project business in previous years, Group sales revenue did not show the same momentum. In the first six months it increased moderately by 2.7 % to € 1,093.3 million, with the Group companies in the Regions Asia / Pacific and Middle East / Africa reporting the strongest growth.
Earnings before taxes (EBT), at € 52.7 million, totalled more than double the comparative prior-year figure of € 24.7 million. Return on sales in the first half of 2017 rose accordingly, to 4.8 % (previous year: 2.3 %).
The number of employees decreased to 15,512 worldwide. As at 30 June 2017, there were 465 fewer people employed in the Group than at the comparative prior-year reporting date. This is mainly attributable to the Efficiency Improvement Programme started in 2016, which also aims at a reduction in staff costs by 2018. To this end, the company is offering, for example, partial retirement programmes and early retirement schemes.
For the current business period the company continues to anticipate a marked improvement in order intake compared with 2016, while sales revenue planning is based on values in line with the previous year’s level. As reported, earnings before taxes (EBT) are expected to be significantly higher than the figure for 2016.
The full report can be viewed at www.ksb.com/ksb-en/Investor-relations/Financial-Reports/Half-year_financial_reports.