KSB Satisfied with Business Performance in the First Nine Months
Furthermore, earnings before finance income / expense and income tax (EBIT) increased significantly and exceeded the comparative figures for 2019 and 2020. Order intake rose by € 582 million in the past quarter to a total of € 1,831 million; sales revenue climbed to € 1,706 million. The third quarter also saw the highest sales revenue of the current year at € 594 million. EBIT improved significantly thanks to the higher sales revenue and the effects of the earnings enhancement programme of KSB SE Co. KGaA. Against this background and based on its expectation of a good fourth quarter, KSB takes a confident view of the 2021 financial year.
In the first nine months of the current financial year, KSB reported an order intake of € 1,831 million (+13 %). This significant increase is primarily attributable to the recovering global economy. This has particularly benefited the business with standard products and the service business as it gains momentum again. Sales revenue in the same period rose to € 1,706 million (+6 %). Adjusted for currency translation effects, all Regions contributed to this growth, even though some countries in Asia as well as South Africa were temporarily affected by coronavirus-related restrictions in the operative business.
“We are very satisfied with business performance so far and are now looking forward confidently to the remaining months”, says CEO Dr. Stephan Timmermann. “All our Segments and Market Areas have shown good progress. This confirms the course we have taken with the realignment.” The Managing Directors have therefore raised the outlook for the expected EBIT in 2021 from the previous range of € 80 to 120 million to a range of € 135 to 145 million.
In view of the good order intake, KSB is also optimistic about the 2022 business year, and sees further potential for an improvement in earnings. However, it is not yet possible to predict how the increase in the prices of commodities, raw materials and energy as well as bottlenecks in the supply chains will affect business next year.
Source: KSB SE & Co. KGaA