KSB Continues its Double-Digit Growth
The consequences of the banking and financial crisis have shaken the global economy, but they have so far had no serious impact on KSB business. Experience shows that macroeconomic changes are only reflected in this business after a time lag of six to nine months.
In particular, the business with components for large engineering plants tends to be of a late-cyclical nature.
| KSB Group | 01-09/2008 | 01-09/2007 | Change | |
|---|---|---|---|---|
| Order Intake | Mio € | 1.702,0 | 1.523,7 | + 11,7 % |
| Sales Revenue | Mio € | 1.454,4 | 1.295,9 | + 12,2 % |
| Employees (30 Sept.) | 14.245 | 13.930 | + 2,3 % |
Order intake and sales revenue development
In the first nine months of 2008, order intake in the Group increased by around € 178 million, or 11.7 percent, compared with the same period last year. This is largely due to the growth of the European KSB companies, which achieved their strongest growth in products for the energy and water sectors. KSB AG increased its order intake by 18.7 percent.
Thanks to strong demand from the industrial sector and water management, a further improvement in order intake was also seen in the American KSB companies. Order intake also rose in the Asia / Pacific Region, where a substantial proportion of the business came from major orders from the power plant sector. As a result of negative currency exchange influences, however, growth there was at a comparatively low level when calculated in euros.
The strongest growth rate was achieved by the Group companies in the Middle East / Africa Region, thanks to healthy order books especially in the Industry, Energy and Water segments.
The Group sales revenue improved in the first nine months of 2008 by around € 159 million. This increase of 12.2 percent is primarily attributable to the positive business developments seen in the Industry, Energy and Water segments. But noticeable increases in sales revenue were also reported in Building Services and Mining.
As a result of invoicing for several major orders, the companies in the Americas and Middle East / Africa Regions posted marked double-digit growth rates. KSB AG increased its sales revenue by 9.7 percent.
Change in number of employees
Despite the strong boost to sales volume, the Group companies only showed a 2.3 percent increase in the number of employees. Altogether, 14,245 people were employed in the Group on 30 September 2008, 315 more than at the same time the previous year. The comparatively small increase is related to the greater output per employee, which is essentially due to process changes.
Results of operations and financial position
The earnings situation in the Group also showed a gratifying development in the third quarter: Earnings before tax remain well above the figure posted for the same period last year. This is why, despite major investments in new production and testing facilities, the financial position of the company too remains positive.
In its cash management, KSB is very strict in observing the principles of risk distribution in view of the uncertainties prevailing on the financial market. Preference was given to the commercial banks, which - as far as it is possible to judge - are not so strongly threatened by the financial crisis.
For the whole of 2008 it is expected that the company will again substantially improve its earnings before tax (previous year: € 128.7 million). KSB AG, too, will exceed last year’s earnings.
The financial crisis is not yet expected to have any major impact on sales revenue and earnings for 2008. If the demand for KSB products declines in the coming year, the currently high level of orders in the Group will help to cushion this development.
Source: KSB SE & Co. KGaA
