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.
Source: KSB SE & Co. KGaA