KSB Group with impressive upturn in earnings
Pump and valves manufacturer KSB closed its 2017 financial year successfully. The company improved its consolidated earnings before income taxes by just under 40 percent (€ 29.6 million) to € 104.2 million. At the same time, KSB increased its net financial position to € 288.0 million (previous year: € 259.5 million), which provides financial resources also for future investments. They will be largely associated with digital transformation, where the company considers itself to hold a leading position across the industry. This should open up the road for KSB towards new business models, explained Stephan Timmermann, Managing Director and CEO, at the financial press conference.
With its current products and services, KSB increased its order intake in the past year by 5.0 percent to € 2,265.3 million. This expansion is mainly attributable to the positive development of business in the water and waste water sector, in industry and in mining. The most important sales region continues to be Europe, while the Region Asia / Pacific reported the highest rate of growth at 13.8 percent, making it the most important current growth market for KSB.
This improvement in earnings is planned to be supported by the positive effects from the efficiency enhancement programme, which aims at reducing the material, staff and overhead costs by € 200 million by 2018. In the current year, however, there will still be a considerable amount of one-off costs incurred as a result of this programme.
Besides the changes in personnel – Werner Stegmüller will be leaving the Board of Management in May and will be succeeded by Dr Matthias Schmitz – a change in the legal form of the company is also planned for 2017. KSB Aktiengesellschaft is intended to be converted into a partnership limited by shares [Kommanditgesellschaft]. A motion to this effect will be submitted to the Annual General Meeting for resolution on 10 May. The Meeting will be presided over by the new Chairman of the Supervisory Board, Dr. Bernd Flohr, who was appointed to this position on 22 March 2017.