September 08, 2011
Grundfos continues according to plan, delivering another positive half-year result. Turnover in that period increased by 10 percent in relation to last year. Nevertheless, Management is reluctant to express optimism regarding the second half year.
The Grundfos Group today presents a half-year result showing progress in turnover of 10 percent compared to 2010. Turnover is DKK 10.1 billion and profit before tax DKK 783 million. Group President, Carsten Bjerg regards the half-year result as satisfactory.
- The first six months of this year were positive for Grundfos and satisfactory in a time with big changes and challenges. We see increases in turnover in all sales regions. The most notable increases are seen in relatively new markets such as Russia and China, which saw impressing growth rates of 25 percent. However, also the rest of Asia is contributing to growth. With low growth rates in Western Europe, in particular Southern Europe, it is a great pleasure to see the result of our globalisation of activities in time, said Mr Bjerg.
However, not only sales developed positively for Grundfos. Since the first months of 2010, the Group has not had any interest-bearing net liabilities. The Group’s net deposit amounted to DKK 1.9 billion by the end of the first six months of 2011. This is an increase of DKK 1.2 billion compared to the same date last year, a result of an intensified focus on the management of the Group’s working capital.
The Group’s solvency in the period this year is 61.5 percent compared to 54.7 percent last year and 60.6 percent at the end of 2010. The solvency ratio is influenced by the holding of cash and stocks which, as per 30 June 2011, amount to approximately DKK 3.8 billion.
- If this holding were used for the reduction of debts, the solvency ratio would be 68.1 percent, the Group President explained.
For the whole of 2011 Group Management is expecting continued growth – with some reservations, however.
- I believe that we, despite a positive effect of seasonal fluctuation, may experience a difficult half year. The recent unrest on the financial markets means that our expectations are subject to bigger uncertainty than usual, said Mr Bjerg.
Grundfos employs 17,606 staff worldwide, of which 4,600 are employed at HQ in Denmark. The number of staff has been increasing throughout the year concurrently with extended activities. Grundfos is still the world’s largest pump manufacturer.