KSB Group results show positive development: Interim Report as per 30 June 2001
Economy puts a damper on the business climate
European economies continued to weaken in the second quarter. The downturn in the German economy in particular does not appear to have bottomed out yet. And the subdued investment activity also led to a worsening of the business climate in mechanical engineering, including the pumps and valves industry.
Order intake just about held its ground; sales increased
In the months from January to June 2001, order intake in the KSB Group declined by 1.2 percent compared with the same period last year. A major factor here was the fact that the first half of 2000 saw a number of major orders whereas such orders were not registered for the period from January to June this year.
KSB Group sales, which lagged behind last year, continued to pick up in the first half of 2001 and improved by 6.5 percent compared with the first six months of 2000.
Number of employees continues to fall
The number of employees on 30 June 2001 showed a reduction by 289 to 12,200 compared with the same time in the previous year. This reduction came about as a result of personnel adjustments at the production sites in Asia and Australia, as well as measures in Europe aimed at focusing production, albeit on a smaller scale.
Improvement in results over previous year
The pre-tax results of the KSB Group improved to DM 5.3 million in the first six months of 2001 compared with the same period last year. In the year 2000, the Group was still showing a loss for the first six months.
Investments
Investments in tangible and intangible assets in the KSB Group rose to DM 23.7 million from DM 17.9 million in the first half of 2000. The main focus of investment activity included the renewal of manufacturing facilities in France and the modernization of production and testing facilities in India.
Outlook
As things stand at present, KSB anticipates that annual order intake will be on prior-year level. Although the sales volume will weaken in the second half of the year, overall sales will exceed previous year's figures. The results can be expected to reach last year's level.
Source: KSB SE & Co. KGaA
