KSB Satisfied with the Current Financial Year
Cumulative order intake in the first three quarters rose by € 112 million (+ 6.3 percent) from € 1,775 million to € 1,887 million, while sales revenue increased by € 132 million (+ 8.1 percent) from € 1,635 million to € 1,767 million. All segments and virtually every Region contributed to this growth. EBIT also developed as planned; currency translation effects had only a minor impact in the reporting period.
“This positive development is attributable, in particular, to the good project business. In addition, the measures introduced last year to promote sales and the service business are showing initial signs of success. Given the good earnings achieved in the first three quarters and despite the economic slowdown sparked by growing trade tensions and structural changes in some industries, we are confident of achieving the order intake, sales revenue and earnings targets set for the current 2019 financial year”, says CEO Dr. Stephan Timmermann.
Significant growth in all segments
All three segments – Pumps, Valves and Service – were able to increase order intake and sales revenue significantly. At 8.5 percent, the Service segment achieved the largest growth in percentage terms. The increase in the Valves segment is 8.1 percent. The Pumps segment recorded an increase of 5.3 percent. Sales revenue was up by 9.2 percent for Valves, by 8.4 percent for Pumps and by 6.4 percent in the Service segment compared with the same prior-year period.
Europe, Asia and Americas strong
Strong growth in order intake was reported in all Regions, driven mainly by orders in the project business. Sales revenue showed a similarly positive picture, with the companies in Asia, North and South America and Europe coming in significantly above prior-year levels. Only the figures of the Region Africa/Middle East were down year on year due to currency-related factors.
Stable results of operations and financial position
The Group’s EBIT in the first nine months exceeded the prior-year figure significantly. Factoring out the first-time application of the IFRS 16 standard (new accounting treatment of leases), the net financial position is stable.
Outlook remains positive
Order intake and sales revenue in the first three quarters significantly exceeded the comparative prior-year figures. The company therefore continues to assume that it will achieve the order intake, sales revenue and EBIT goals set for 2019.
Source: KSB SE & Co. KGaA