With a 6 per cent increase in turnover Grundfos’ growth continues. The world economy, however, gives rise to significant challenges and Group President Carsten Bjerg is cautious about the future. At the same time he is happy about the fact that Grundfos is well prepared with strong new products and even more in the pipeline.
Turnover in the Grundfos Group for the first half-year of 2012 amounts to 10.7 bDKK against 10.1 bDKK in the same period last year. Profit before tax amounts to 779 mDKK – slightly below the first 6 months of 2011, but a satisfactory result in the light of the global tendencies, Carsten Bjerg, Group President in Grundfos, explains.
- According to our expectations, our sales don’t grow at the same pace as earlier. The development has been impacted by difficult conditions in several markets. Not only is the growth negative in great parts of Southern Europe, but also markets which have traditionally been characterized as strong markets in the rest of Europe, are now marked by recession. On the positive side we see significantly improved results in major markets like Russia and the United States, just as markets in Asia and the Middle East have contributed significantly to the total growth of the Group, Carsten Bjerg says.
Production costs have increased from 6.1 bDKK to 6.5 bDKK, whereas other costs have risen from 3.1 bDKK to 3.4 bDKK.
- A significant part of the increase in other costs is caused by planned strategic initiatives especially within research and development and on the sales side, where Grundfos continues the expansion, Carsten Bjerg explains.
The profit before tax at 779 mDKK is coherent to 7.3 per cent of turnover and is as mentioned, slightly below last year’s level at 783 mDKK coherent to 7.8 per cent of turnover. There has been a distinct recession in the world economy and thus also caution about investments especially in the public sector. For the year 2012 the Grundfos Group President still expects growth, but there is reason to be cautious.
- I expect a continued growth in the second half-year of 2012 and traditionally the sales are increasing now where the large markets are entering the fall and winter season. But the continued unrest with the Euro, the anxiety on the financial markets and the declining global growth entails that we are slightly more cautious with our forecasts than usual, Carsten Bjerg concludes.
At the same time Carsten Bjerg expects significant results with new product.
– Never before have we had so great expectations to the sale of new products as today when we are ready to yield the fruit of the recent years’ investments in product development. Some of the products have already been launched and more is in the pipeline, and I am confident that this we help us during hard times, the Group President explains.