KSB Group: Growth in Orders Outside Europe
KSB reported renewed demand for standard pumps and valves in the first half of 2010. As anticipated, a reduction in large orders was recorded in the project business with its high proportion of customised products.
Total order intake reached € 1,003.0 million by the end of June, while sales volume totalled € 914.9 million, meaning that, midway through the year, both were down 2.3 % on the figures for the first half of 2009.
The order intake development was influenced by the continuing weakness in demand in Europe, which is by far the most important sales market for KSB. By contrast, order intake in the Regions Asia / Pacific, Americas and Middle East / Africa returned to strong growth. Excellent figures were posted by the Asia / Pacific companies, which clocked up 30 percent more orders.
Sales revenue also showed regional differences. Whereas the figures for the Group companies in Europe overall were well below those of the comparative prior-year period, sales revenue in the three Regions outside Europe grew.
Owing to the increased price pressure in the market and higher staff costs, earnings in the first six months of 2010 were down € 18.5 million on the same period in 2009 and stood at € 49.0 million.
KSB anticipates that order intake and sales revenue for the whole year will be on a par with prior-year figures, but at the same time does not rule out a slight decline under unfavourable conditions. If, however, the economic momentum being seen in Europe is sustained, moderate growth could also be achieved. A positive development is expected primarily in the valves and service business.
As KSB has already reported, consolidated earnings for 2010 are projected to be substantially lower than in 2009. In addition to the effects mentioned, higher depreciation and amortisation charges for major investments made in previous years will also impact figures.
KSB will continue to implement key projects in the second half of the year in order to access growth markets, develop new pumps, drives and automation products, and to modernise and expand the valve range. KSB will also work on expanding the global reach of its service business.
Source: KSB SE & Co. KGaA
