KSB posts record earnings but notes market dip

Frankenthal, Germany - Pumps and valves manufacturer KSB has reported record earnings (EBT) of Euor200 million on fiscal 2008 sales of Euro1,992 million, while order intake rose 12.7% to Euro2,179 million. The performance far exceeded expectations at the start of the financial year, said the company, noting that two-thirds of its order growth was in the energy and water sectors.
 
Turning to the current financial year, KSB noted a markedly changed market environment. While the consolidated sales revenue from January to March 2009 grew by 8.4% to Euro471 million compared with the same quarter in the previous year, order intake in the first three months of 2009 fell by 11% to Euro512.7 million.

However, KSB chairman Dr. Wolfgang Schmitt said the group was prepared for the new demand situation. In addition to a high level of orders in hand (around Euro990 million), KSB, he said, had a “solid financial base” and “broad-based market foundation” both regionally and in terms of market sectors.

The company, said Schmidt, was now positioned has to closer align capacity in sales and production to business lines that are less heavily affected by the economic slump. However, given the uncertainty of current economic forecasts, the KSB chief declined to predict how demand in some sectors or order intake would develop over the coming months.