KSB Group achieves a marked improvement in its results

The previous year's results lay at DM 39.9 million. In the process, the manufacturer of pumps and valves increased its return on sales from 1.9 to 2.6 percent. Apart from the appreciable economic recovery in this industrial sector in the year 2000, cost-cutting programmes and a reduction in restructuring costs had a particularly positive effect on the results.

A major contribution to this improved performance came from KSB AG. The Group's core company in Germany achieved a turnaround in the pre-tax results from DM -4.4 million (1999) to DM +19.8 million (2000).

The KSB Group companies in the Regions Americas and Asia/Pacific/Africa, with the exception of the Chinese joint venture and the two Venezuelan companies, all made positive contributions to the results.

Strong growth in orders

The KSB Group increased its order intake in the year 2000 by 8.7 percent to DM 2,263.6 million. An above-average growth in orders was reported by KSB AG, whose order intake increased by 11.2 percent. By contrast, KSB S.A. showed a downturn of 1.7 percent with an order volume of DM 451.1 million, which was essentially due to the withdrawal from the oil business at the end of 1999. When the figures are adjusted for this factor, the French KSB company shows a 7.6 percent growth in orders.

Further reduction in the number of employees

At the end of 2000, KSB employed 12,217 people worldwide and thus had 567 employees fewer than at the same time in the previous year. Most of this reduction was in Europe and Asia.

In Europe, the number of employees fell by 252 to 6,511 as a result, amongst other things, of the restructuring of two production sites to make them into service centres, as well as outsourcing measures. KSB AG had 3,304 employees at the end of the year, 43 fewer than in the previous year. KSB S.A. reduced its workforce by 5.4 percent to 1,235.

In the Region Asia/Pacific/Africa, the number of employees fell by 6.3 percent to 3,919; and the number in the Region Americas fell by 3.3 percent to 1,732.

Outlook

For the current year, a slight increase in order intake is anticipated in the KSB Group, along with a growth in sales, leading to a further improvement in the results.

KSB sees growth opportunities in the increasing demand for pumps and valves both in the industrial sector and in water and waste water management. KSB aims to follow up on its earlier successes in the fitting of seawater desalination plants in the Middle East, and also to participate in the development of the power supply market in the USA with power station pumps. Service operations will be extended worldwide through a new range of services and service centres.

The current year will also see the continuation of important projects by KSB to secure the future, such as the creation of a standard Europe-wide business administration system based on SAP R/3 software. This will be completed by the middle of the year for Sales and Distribution, Materials Management, Finance and Accounting. In the second half of the year, preparations will begin for the integration of Production into the new systems landscape.