Sep 03, 2016 14:00 JST

Source: Grundfos

Grundfos Delivers Further Improved Profitability

Denmark, Sep 03, 2016 - (ACN Newswire) - The result for the first half-year of 2016 shows significantly improved earnings. Accelerated efforts within technical innovation, digital solutions and services shall pave the way for renewed growth.

 


In spite of a stagnating market, earnings before interest and tax (EBIT) increase by 29 percent compared to first half of 2015, increasing from DKK 637 million to DKK 824 million. Turnover is close to DKK 11.6 billion against DKK 11.9 billion last year.

"We are still on the right track with our earnings which is a prerequisite for our investments in the future and for standing on strong grounds in the increasing competition. Targeted efforts in bringing down production and material costs and improving prices and product mix have improved our margins significantly, and we have maintained our high focus on the fixed costs. We are thus satisfied with the development in the earnings during the first six months. But we need to re-create growth in sales, and this will be a long haul in a difficult market," says Group President Mads Nipper.

Growth has returned in China as well as other Asian markets including India. Most of Latin America show positive signs, and OEM sales to large boiler manufacturers deliver solid growth. Sales in the US market has declined following a very strong 2015, the challenges in Russia continue, while sales in Europe are around last year's level. In the Middle East sales decline in a market influenced by the negative development in oil prices.

"We are continuing the execution of our 2020 strategy, where Grundfos will become an even stronger supplier of systems and knowledge to our customers," says Mads Nipper and continues:

"We will in the coming period focus even more on digitalization, service and new technological innovation, which will further strengthen our leading position in the market. This is a major change for Grundfos, but also a unique opportunity to play an even bigger role in solving the World's challenges around water and climate change," explains Mads Nipper.

About Grundfos

Grundfos is a leading pump manufacturer with an annual production of more than 16 million pump units. It offers a full range of modular, energy-efficient and intelligent products and services for applications within buildings, industries and water. Grundfos has more than 80 companies in 55 countries. For more information, please visit www.grundfos.com.

For further information:
Group VP, Communication, Public Affairs & Engagement
Mr. Kim Nohr Skibsted
P: +45 87506900 or +45 30525020
kskibsted@grundfos.com

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Source: Grundfos
Sectors: Water, Design Process, Engineering

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