Pump and valve manufacturer KSB is very satisfied with the past 2019 financial year and continues on its growth path. Order intake rose by € 150.2 million to € 2,453.8 million and sales revenue by € 137.2 million to € 2,383.2 million. Furthermore, KSB significantly increased its operating earnings (EBIT) year on year to € 113.6 million. Adjusted for lease liabilities, which were recognised under IFRS 16 for the first time, the net financial position improved by € 38.4 million to € 293.4 million.
“We are very satisfied with the past financial year. The ambitious goals we had set ourselves were reached. All of the key indicators are in line with our forecast. At the same time, we have started – within the scope of the Climb 21 strategy project we initiated – to consistently focus our company on those growth markets in which sustainable returns can be generated,” said Dr Stephan Timmermann, CEO.
The increase in order intake is attributable to significant growth in all markets, particularly in the Energy, Water / Waste Water and Building Services market segments.
At 75 %, the Regions Asia and Americas accounted for the largest share of the growth in the Group’s order intake. The companies in the Regions Europe and Middle East / Africa also performed well. Pumps remain the largest segment, with an order intake of € 1,617.8 million. Order intake in the Valves segment was € 361.9 million, while the Service segment, which operates under the KSB SupremeServ brand, reported an order intake of € 474.1 million.
With some of the orders being part of long-term projects, sales revenue lags behind order intake. This is reflected in an increase of approx. € 50 million in orders on hand to € 1.4 billion, which will have a positive impact on the 2020 financial year.
The current 2020 financial year will see the impact of the coronavirus. KSB assumes that as it spreads further, business development will not remain immune to negative effects.
The company invested € 78.9 million in property, plant and equipment in 2019 for modernisation and sustainability. The areas of focus were investments in our plants in Germany for the Water / Waste Water markets, in India for the Energy market and in the USA for the Mining market. A further € 15.2 million was invested primarily in the process of digitalising the company and its products.
“Sustainability is an essential pillar of our corporate strategy,” Dr Timmermann added. The company has therefore defined nine binding goals to be achieved by 2025. Their spectrum ranges from reducing the plants’ CO2 emissions by 30 percent through increasing the proportion of women in management positions to at least 20 percent to intensifying professional development to 30 hours per employee per year.
Payment of a dividend of € 8.50 per ordinary share (previous year: € 3.00) and € 8.76 per preference share (previous year: € 3.38) will be proposed to the Annual General Meeting, thus taking due account of the positive earnings performance.
You will find more information in our online KSB Annual Report at http://annualreport2019.ksb.com