March 17, 2008
Grundfos describes its half-yearly result in 2008 as satisfactory despite pressure from weak currencies and increasing material prices.
Sales are generally going well with a 13 percent increase to 9,191m DKK (1,217m Euro) compared to 8,099m (1,073m Euro) in the first six months of 2007. Profit before tax amounts to expected 464m DKK (61.5m Euro) compared to 610m DKK (80.8m Euro) in 2007. Profit is 5 percent of turnover.
Sales have increased in all regions. Particular increases were seen in Eastern Europe and Asia with 24 and 14 percent sales increases. In North America Grundfos sold 61 percent more than in the first six months of 2007. This, however, is primarily due to the acquisition of American pump company Peerless.
Group President, Carsten Bjerg, described the half-yearly result as satisfactory:
”We are going through a period with financial crisis and recession in North America and other markets. Material prices are still on a high level and in addition we see an extraordinarily week US Dollar. We may not have been hit yet, or else we have managed to avoid the recession everybody is talking about. However, we shall focus closely on the economic development. I am very pleased that we have managed to maintain a fine increase in turnover and an acceptable profit,” said Mr Bjerg.
Grundfos is not planning any adjustment of the present direction and is maintaining the goals for 2008. However, the development of the world economy will of course be watched closely.
Last spring Carsten Bjerg introduced new points of orientation for the Grundfos Group, called Innovation Intent. Among other things, Grundfos will differentiate work in the markets. Globalisation will continue through the development of activities in countries such as China and in addition focus will be on completely new business areas, supplementing the core business.
The new possibilities are tested in Grundfos New Business which, with annual investments of 150m DKK (20m Euro), develops projects aimed at ensuring the limited resources of the earth will suffice for a rapidly growing population with increasing spending power, without destroying the environment. New Business projects include micro sensors, NoNox urea dosing systems for cleansing exhaust from diesel engines, and flexible and mobile BioBooster sewage treatment plants.