KSB Improves Cost Structure


Pump and valve manufacturer KSB is, as expected, reporting a decline in its sales revenue and earnings figures for the first half of the year. The 3.1 % drop in consolidated sales revenue to € 1,064.6 million is solely attributable to negative currency effects, as explained by the company in its half-year financial report published today.

Earnings before tax (EBT) fell by 13.6 % to € 24.7 million as a result of lower sales revenue and higher one-off expenses and restructuring costs.

The exceptional items impacting on earnings are related to KSB’s Efficiency Improvement Programme, which has been launched to cut material, staff and overhead costs by a total of € 200 million by the end of 2018.

The Group’s consolidated order intake for the first six months was still 4.7 % down on the previous year and reached a volume of € 1,098.3 million. Again, currency exchange rate fluctuations had a negative impact.

For the full year, KSB continues to expect Group order intake to increase. A key factor in this regard will be the placing of large-scale orders for power plant pumps expected for the second half of the year.

Sales revenue is anticipated to be significantly down on 2015 by the year end, due in particular to the lower number of project orders being placed. Earnings before tax are likely to be well down on prior-year levels given the lower sales revenue and the costs associated with the Group’s restructuring programme.

KSB will be continuing to pursue the measures introduced to improve its profit situation over the coming years. At the same time, a range of sales initiatives, primarily aimed at standard products and service activities, are to boost sales revenue.

More articles on this topic

Patented Sealing Solution to Improve Drinking Water

14.08.2023 -

In appliances used for water purification and carbonated water, the valve of a carbon dioxide cartridge and the pressure-reducing valve on the device itself must be joined with a secure seal. Now, Freudenberg Sealing Technologies has developed a patented, high-performance polyurethane seal for a customer that has a specific geometry that not only accommodates different valve dimensions on the various gas cartridges, but also offers high impermeability under long-lasting pressure.

Read more

ITT Engineered Valves Announces New Cam-Tite Ball Valve GV Series

16.05.2023 -

ITT Inc.’s Engineered Valves announced the launch of the Cam-Tite Ball Valve GV Series, an innovative valve solution designed as a direct dimensional and upgraded replacement for severe service applications. The GV Series utilizes advanced sealing technology to isolate and contain highly hazardous liquids and gases to protect the safety of operators and prevent fugitive emissions.

Read more