The Annual Result for the Grundfos Group 2001

"Group Management and the Group Board regard a 7.3% growth as very satisfactory considering the current circumstances and the fact that, again in 2001, the Grundfos Group gained market shares compared with important competitors. Particular attention should be paid to strong sales increase in several new markets, such as China, Russia, India, and Brazil," said Group President, Niels Due Jensen.

Although, in the middle of the year, Group Management realised that the growth of turnover was decreasing, it was decided to maintain the level of activity and ambition for the strategic and long-term projects of the Group, including the most important product development projects and the efforts to establish Grundfos in new geographical areas, as well as the ambitious branding project, the eBusiness projects, and the newly established Poul Due Jensen Academy. These projects are regarded as decisive in the long term and so it has to be accepted that, in a difficult year as 2001, they reduce the level of profit in the short term.

With special attention to these facts, Group Management are satisfied with a result before tax of DKK 618m, which is 6.1% of turnover. Although this is a decline from 7.5% of turnover in 2000, which is a step backwards, the Group's long-term goals of a 10% profit before tax will be maintained.

"Grundfos also maintain the goal of increasing turnover by an average of 10% a year. This goal is maintained partly to ensure the necessary financing of large investments in the development of trend-setting products and state-of-the-art production, partly to ensure an even more intensive entrance in new markets," Due Jensen said.

Group Management's expectations for 2002 are, however, moderate. The growth in turnover will be at the same level as that of 2001 and, again in 2002, a considerable part of Group turnover will derive from new markets, such as Russia, China, Eastern Europe, India, and Brazil. Due to great uncertainty concerning the general economic development in Grundfos' primary markets, Group Management will continue to emphasise efficient cost management.

Grundfos now join the UN Global Compact Initiative and the nine criteria concerning the observance of the human rights. This is a natural consequence of Grundfos' corporate values emphasising the need for a strong and sustainable development – as regards the environment, the social dimension and the economy.

About the Grundfos Group

With an annual production of 10 million pump units, Grundfos is one of the world's leading pump manufacturers. Circulator pumps (UP), submersible pumps (SP), and centrifugal pumps (CR) are the three major product groups. Today, Grundfos is the world's largest manufacturer of circulator pumps, covering approximately 50 per cent of the world market.

In addition to pumps, Grundfos manufactures electric motors for the pumps and has a considerable production of electric motors for separate merchandising. Furthermore, Grundfos develops and sells state-of-the-art electronics for controls for pumps and other systems.

Grundfos was established in 1945 by the late Poul Due Jensen. At first he gave his company the name of "Bjerringbro Pressestøberi og Maskinfabrik" (Bjerringbro Die-Casting and Machine Factory) and not until 1967, after several changes of names, did the company get its present name, GRUNDFOS.