Grundfos to build on 2006 growth

London -- Grundfos Group has increased market share on the back of a 15% sales rise -- 2% from acquisitions and 13% from organic growth – to DKK 15.4 billion (GBP1.4 billion) as well as higher earnings, the group said in a 2006 annual results. Growth areas included higher sales of energy efficient A-labelled circulator pumps into western European households, said the 2 May statement from the Danish pumps major.

Higher sales combined with “bigger than expected” capacity utilisation and cost controls helped pre-tax profit to reach almost DKK 1.5 billion, or 9.6% of turnover. The profitability level was 18% more than the previous year.Against this, Grundfos said its 2006 performance was negatively impacted by price increases in the most of its raw materials, including copper, aluminium, stainless steel and cast iron.

For 2007, Grundfos said it plans to make its largest ever investment alongside the opening of new factories in Hungary and Mexico. Investment areas will include the group’s R&D activities that are now carried out in development centres in Hungary, India, China, Finland and the US. 

The Group’s development costs in 2006 were DKK680 million, or 4.4% of turnover. The aim of investing 4 or 5% of the Group’s total turnover in R&D is maintained, and innovation is still a crucial issue throughout the Group.

“In 2006 we focused particularly on innovation and we succeeded making it clear to all parts of the organisation that we shall naturally continue to develop innovative pumps, but also that we must all be innovative in the ways we think and act in other connections,” said Carsten Bjerg, group president.