- Order intake and sales revenue rose despite negative currency translation effects
- Earnings are weighed down by write-downs
- Changes in the company pension scheme improve earnings and balance sheet structure
- Expectations for the current financial year are positive
In 2018, the pump and valve manufacturer KSB increased both order intake and sales revenue compared with the previous year. This is shown by the provisional figures for the company for the past financial year.
The volume of incoming orders booked by KSB rose by € 38.2 million to € 2,304 million in financial year 2018 (previous year: € 2,265 million) and would have been significantly higher, by € 96.8 million, without negative currency translation effects. The increase by 1.7 % is primarily attributable to business in the manufacturing sector, in building services, and the re-strengthening of business with liquefied gas valves.
About two thirds of the growth in order intake came from Asia and Europe. The companies in North America performed positively, while business in South America before currency effects was weaker. Adjusted for currency translation effects, all Regions grew; currency-adjusted growth of the Group was 6 %.
Sales revenue in 2018 rose by € 38.3 million (+ 1.7 %) to € 2,243.3 million (previous year: € 2,204.9 million) and would also have been significantly higher, by € 89.1 million (5.8 %), if the negative currency translation effects were excluded. As some of the orders are part of long-term projects, sales revenue lags behind order intake. In line with customer planning schedules, major orders – which were again received in greater numbers in 2018 – will only be invoiced by KSB in 2019 and subsequent years. This relates primarily to projects in the Energy and Industry segments.
Earnings before taxes, which KSB will publish in its Annual Report on 28 March, are in line with the statements already made in the course of the year 2018 and, as expected, are significantly lower than in the previous year. The provisions for a legacy project in Great Britain in the amount of € 25 million, already reported on 2 May 2018, had a significant impact here.
In addition, write-downs in particular had an adverse effect on earnings. For instance, the company has taken impairment risks into account, and it has also reacted to the current political conditions in its business with Iran. Furthermore, KSB has added a lump-sum option to its company pension scheme. This made it possible to optimise the level of provisions for pensions and achieve a positive effect on earnings.
In the current 2019 financial year, KSB aims to generate further growth in order intake and sales revenue, and also aims to achieve a significant improvement in earnings.