Pump and valve manufacturer KSB has reported a substantial rise in earnings for the first half of 2017, with increases in both order intake and sales revenue. The Germany headquartered company also more than doubled its consolidated earnings before taxes compared with the same period in 2016.
KSB published its half-year financial report in August 2017. It details financial results up to 30 June 2017.
Order intake increased by 7.6%, to €1,182 million, something KSB attributes to good performance by its subsidiaries outside of Europe. Double-digit percentage growth in orders was reported in the Asia/Pacific, Americas and Middle East/Africa regions. Only the subsidaries in Europe remained below the prior-year level overall.
Group sales revenue did not demonstrate the same momentum, a consequence of weaker project business in previous years. Nevertheless, it still increased by 2.7% to €1,093 million, the strongest performance coming from KSB Group companies in the Asia/Pacific and Middle/East Africa regions.
Earnings before taxes (EBT) reached € 52.7 million, more than doubling the comparative prior-year figure of € 24.7 million. Return on sales in the first half of 2017 rose accordingly, to 4.8 % compared to 2.3% in the previous year.
Globally, the number of KSB employees decreased to 15,512, meaning that on 30 June 2017 there were 465 fewer employees in the KSB Group than on the same date in the previous year.
These reductions are attributed to KSB’s Efficiency Improvement Programme, launched in 2016, which aims to reduce staff costs by 2018. To this end, the company is offering, schemes such as partial retirement programmes and early retirement schemes.
“For the current business period the company continues to anticipate a marked improvement in order intake compared with 2016, while sales revenue planning is based on values in line with the previous year’s level,” KSB writes in a statement. “As reported, earnings before taxes (EBT) are expected to be significantly higher than the figure for 2016.”