Annual Result 2013: Growth and Profit at Grundfos
In 2013, the Grundfos Group has had a growth in turnover of 2.9 per cent to 23.3 billion Danish kroner against 22.6 billion kroner in 2012.
The result before tax reached 1.5 billion kroner against 1.8 billion in 2012. The foreign exchange rates outside the Eurozone have had a negative influence on the growth for 2013. Without this influence, the growth rate would have been 4.5 per cent. Grundfos’ investments in research and development amounted to a total of 1.3 billion in 2013. The net interest-bearing deposit now amounts to 2.9 billion against 2.6 billion in 2012.
It is especially Grundfos’ three largest markets - China, Russia and Germany - with growth rates of 19, 13 and 6 per cent respectively, which draw the result in the right direction. Sales in the US have not been satisfactory, just as the pump market in several places of Europe are stagnant.
"The financial results for 2013 are reasonable but below what we expected. We have an ambition of achieving higher growth during the years to come on both top and bottom line", says Group Chairman Jens Moberg and continues:
"The world’s population growth and urbanisation create a need for energy efficient solutions within the areas of housing, building, production and infrastructure. Grundfos is the world’s leading pump manufacturer, and we have a considerable unexploited potential for using this position for winning market shares in the coming years. We expect growth in both turnover and earnings in 2014."
It is estimated that ten per cent of the world’s electricity consumption is spent on pumps, but the consumption could be halved if standards and regulations for the quality of pumps were implemented everywhere. A demand for higher pump standards would benefit Grundfos.
Grundfos continues reducing its environmental impact with a 2 per cent reduction in CO2 emission, a 6 per cent reduction in energy consumption and 10 per cent lower water consumption compared to 2012, and which is a 19, 13 and 25 per cent reduction respectively compared to 2008. The number of employees increased during the year by 792 employees from 17,984 to 18,776. 4,728 of these employees are working in Denmark against 4,661 in 2012.