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Grundfos sets out 2020 strategy
pumpindustry ANALYST
ISSN 1359-6128 March 2015
www.pumpindustryanalyst.com
Grundfos sets out 2020 strategy
T
he Grundfos board of directors has approved a new strategy for the group to 2020. The strategy is designed to secure clear goals, reduce organizational complexity, prioritise business areas and markets, and map out initiatives to improve competitiveness over the next six years. “The foundation of the strategy is our existing purpose and values, and it confirms that Grundfos continues to be characterised by strong innovation, ground-breaking products and continuing emphasis on sustainability,” said Grundfos CEO and group president Mads Nipper. The new strategy is looking to secure stronger financial results with average annual sales growth of 6% or more and profit before tax equal to at least 10% of net turnover as well as continued high customer loyalty and employee satisfaction. Grundfos has also identified a number of strategic focus areas. “We need to maintain a global leadership in selected product segments through distinct prioritisation, we need to strengthen our end-to-end supply chain to provide us with competitive advantages, we
need to develop a strong business in delivering services, we need to secure and maintain a competitive cost base, and we need to strengthen our ability to collaborate across functions and geographies through a culture that is customer-focused, cost-conscious and responsible,” added Nipper. Grundfos’s profitability has declined over the last few years, and this trend continued in 2014 as the company faced increased competition, low growth in European markets and unfavourable currency exchange rates. The 2014 result before tax was DKK881 million, compared with DKK1475 million in 2013. 2014 Group turnover increased 1.6% to DKK23.6 billion. For further information, visit www.grundfos.com
COMMENT While Grundfos’s purpose and values remain unchanged, the 2020 strategy has identified a fresh set of targets and priorities for additional growth and increased profit under the group’s new management team. ■
Contents Company Profile Franklin Electric
5
GUD Holdings
6
Company Watch Alfa Laval
7
Andritz
7
CECO Environmental
8
DXP Enterprises
8
Energy Recovery
9
Pentair
9
Diary
15
Dividends
13
Exchange Rates
14
Financial Calendar
14
In Brief
12
Market Prospects New Product Developments
2–4 14
News Grundfos sets out 2020 strategy
1
New name for Watson-Marlow Pumps Group
1
Baird Capital acquires UK water services provider Clearwater Group
12
Eureka Pumps to open service workshop in Hammerfest
12
New name for Watson-Marlow Pumps Group
PCM takes over Canadian oilfield equipment and rental company
12
W
Metso adds to service network in Mexico
13
Forum Energy Technologies buys J-Mac Tool
13
ITT continues to support Engineers Without Borders
13
Nikkiso decides against canned motor pump business spin-off
16
Shareholders approve Halliburton’s acquisition of Baker Hughes
16
atson-Marlow Pumps Group has changed its name to Watson-Marlow Fluid Technology Group to better reflect its expanded portfolio of fluid technologies. Over recent years, Watson-Marlow has moved beyond its traditional peristaltic pump business with the additions of MasoSine (sinusoidal pumps for use in the food and beverage sector), Flexicon (filling systems) and BioPure (aseptic tubing connection systems) and non-pump transfer tubing development. Watson-Marlow Fluid Technology Group’s president Jay Whalen said: “Our new name unifies our growing portfolio of fluid path
technologies, it is a better expression of who we are, and a reflection of the growing portfolio of businesses and opportunities that sit within our group. Our sector market focus, combined with the recent acquisition of BioPure gave us the opportunity to rethink the way we present ourselves to the market. We can no longer simply be defined as a niche pump or tubing company: we now offer customers a much more holistic offering.” Watson-Marlow Fluid Technology Group is headquartered in Falmouth, UK, and is part of the Spirax-Sarco Engineering Group plc.
Interpump Group invests in Inoxihp
16
Ebara expands in Vietnam
16
Orders & Contracts
10
People & Appointments
11
Stock Watch
15
For further information, visit www.wmftg.com
ISSN 1359-6128/15 © 2015 Elsevier Ltd. All rights reserved. This journal and the individual contributions contained in it are protected under copyright by Elsevier Ltd, and the following terms and conditions apply to their use: Photocopying Single photocopies of single articles may be made for personal use as allowed by national copyright laws. Permission of the publisher and payment of a fee is required for all other photocopying, including multiple or systematic copying, copying for advertising or promotional purposes, resale, and all forms of document delivery. Special rates are available for educational institutions that wish to make photocopies for non-profit educational classroom use.
ISSN 1359-6128 March 2015
www.pumpindustryanalyst.com
Grundfos sets out 2020 strategy
T
he Grundfos board of directors has approved a new strategy for the group to 2020. The strategy is designed to secure clear goals, reduce organizational complexity, prioritise business areas and markets, and map out initiatives to improve competitiveness over the next six years. “The foundation of the strategy is our existing purpose and values, and it confirms that Grundfos continues to be characterised by strong innovation, ground-breaking products and continuing emphasis on sustainability,” said Grundfos CEO and group president Mads Nipper. The new strategy is looking to secure stronger financial results with average annual sales growth of 6% or more and profit before tax equal to at least 10% of net turnover as well as continued high customer loyalty and employee satisfaction. Grundfos has also identified a number of strategic focus areas. “We need to maintain a global leadership in selected product segments through distinct prioritisation, we need to strengthen our end-to-end supply chain to provide us with competitive advantages, we
need to develop a strong business in delivering services, we need to secure and maintain a competitive cost base, and we need to strengthen our ability to collaborate across functions and geographies through a culture that is customer-focused, cost-conscious and responsible,” added Nipper. Grundfos’s profitability has declined over the last few years, and this trend continued in 2014 as the company faced increased competition, low growth in European markets and unfavourable currency exchange rates. The 2014 result before tax was DKK881 million, compared with DKK1475 million in 2013. 2014 Group turnover increased 1.6% to DKK23.6 billion. For further information, visit www.grundfos.com
COMMENT While Grundfos’s purpose and values remain unchanged, the 2020 strategy has identified a fresh set of targets and priorities for additional growth and increased profit under the group’s new management team. ■
Contents Company Profile Franklin Electric
5
GUD Holdings
6
Company Watch Alfa Laval
7
Andritz
7
CECO Environmental
8
DXP Enterprises
8
Energy Recovery
9
Pentair
9
Diary
15
Dividends
13
Exchange Rates
14
Financial Calendar
14
In Brief
12
Market Prospects New Product Developments
2–4 14
News Grundfos sets out 2020 strategy
1
New name for Watson-Marlow Pumps Group
1
Baird Capital acquires UK water services provider Clearwater Group
12
Eureka Pumps to open service workshop in Hammerfest
12
New name for Watson-Marlow Pumps Group
PCM takes over Canadian oilfield equipment and rental company
12
W
Metso adds to service network in Mexico
13
Forum Energy Technologies buys J-Mac Tool
13
ITT continues to support Engineers Without Borders
13
Nikkiso decides against canned motor pump business spin-off
16
Shareholders approve Halliburton’s acquisition of Baker Hughes
16
atson-Marlow Pumps Group has changed its name to Watson-Marlow Fluid Technology Group to better reflect its expanded portfolio of fluid technologies. Over recent years, Watson-Marlow has moved beyond its traditional peristaltic pump business with the additions of MasoSine (sinusoidal pumps for use in the food and beverage sector), Flexicon (filling systems) and BioPure (aseptic tubing connection systems) and non-pump transfer tubing development. Watson-Marlow Fluid Technology Group’s president Jay Whalen said: “Our new name unifies our growing portfolio of fluid path
technologies, it is a better expression of who we are, and a reflection of the growing portfolio of businesses and opportunities that sit within our group. Our sector market focus, combined with the recent acquisition of BioPure gave us the opportunity to rethink the way we present ourselves to the market. We can no longer simply be defined as a niche pump or tubing company: we now offer customers a much more holistic offering.” Watson-Marlow Fluid Technology Group is headquartered in Falmouth, UK, and is part of the Spirax-Sarco Engineering Group plc.
Interpump Group invests in Inoxihp
16
Ebara expands in Vietnam
16
Orders & Contracts
10
People & Appointments
11
Stock Watch
15
For further information, visit www.wmftg.com
ISSN 1359-6128/15 © 2015 Elsevier Ltd. All rights reserved. This journal and the individual contributions contained in it are protected under copyright by Elsevier Ltd, and the following terms and conditions apply to their use: Photocopying Single photocopies of single articles may be made for personal use as allowed by national copyright laws. Permission of the publisher and payment of a fee is required for all other photocopying, including multiple or systematic copying, copying for advertising or promotional purposes, resale, and all forms of document delivery. Special rates are available for educational institutions that wish to make photocopies for non-profit educational classroom use.