- Email: [email protected]
KSB AG, Germany
Pump Industry Analyst
December 2006
KSB AG, Germany
COMPANY PROFILE
Profile KSB specialises in pumps, valves, related systems and services mainly for industry and process engineering, water and wastewater, energy, building services, and mining applications. With almost 13 000 employees, KSB has a presence in more than 100 countries with sales companies, offices, agencies and 33 manufacturing sites, and has an annual turnover of almost 1400 million. Analysis In 2005, KSB increased its order intake in all four regions - Europe; Middle East/Africa; Asia/Pacific; and the Americas. Overall sales revenue was up 9.8% on the previous year. Middle East/Africa saw a 19.7% increase in sales revenue and a 29.5% gain in earnings before income taxes (EBIT). In the Asia/Pacific region, sales revenue increased 48.5% as a result of significantly improved order intake. EBIT for Asia/Pacific was twice that achieved in 2004. The Americas region also recorded strong growth in sales revenue, up 31.3%, with a 4.1 million improvement in EBIT, which was up 40.1%.
COMMENT 2005 was a year of progress and change for KSB. Now under new leadership, KSB appears to be confidently riding the wave of the sustained growth in the global economy in 2006, regularly reporting strong pump and valve order activity in international markets in the power generation, chemicals, petrochemicals and water and wastewater sectors (see Orders, page 11). ■
Key Figures (E million) KSB Group
Year ended 31.12 2004
2003
2002
2001
1390.3
2005
1266.8
1178.1
1180.2
1161.9
734.4 278.0 377.9
682.2 270.4 314.2
– – –
– – –
– – –
Consolidated Order Intake
1468
1294
–
–
–
Earnings before Interest and Taxes
44.2
33.6
39.7
43.9
36.8
Net Profit for the Year
22.6
14.7
18.7
19.6
14.1
Sales Revenue Of Which: Industry and Building Services Water and Waste Water Energy & Mining
Capital Expenditure No of Employees Of Which: Europe Middle East/Africa Asia/Pacific Americas Contact Details KSB AG Chairman of the Board of Management: Address:
45.2
33.7
60.4
31.3
29.0
12 963
12 467
12 281
11 948
12 071
7287 356 3712 1558
7284 351 3484 1404
– – – –
– – – –
– – – –
Heinz-Jürgen Otto 67225 Frankenthal Germany
Web: www.ksb.com
Recent Events • Heinz-Jürgen Otto joined KSB on 1 April 2006 as chairman of the board of management, replacing Josef Gerstner, who unexpectedly left the company in July 2005. • KSB’s PumpDrive variable speed system, launched at the Frankfurt ISH fair in 2005, attracted 1000 orders from customers in building services, industry and other sectors within the space of six months in Germany alone. • In South Africa, KSB stepped up its collaboration with US subsidiary GIW Industries Inc in 2005. Slurry pumps developed in the USA are manufactured locally by KSB’s South African company in Johannesburg to serve the needs of the African continent.
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December 2006
KSB AG, Germany
COMPANY PROFILE
Profile KSB specialises in pumps, valves, related systems and services mainly for industry and process engineering, water and wastewater, energy, building services, and mining applications. With almost 13 000 employees, KSB has a presence in more than 100 countries with sales companies, offices, agencies and 33 manufacturing sites, and has an annual turnover of almost 1400 million. Analysis In 2005, KSB increased its order intake in all four regions - Europe; Middle East/Africa; Asia/Pacific; and the Americas. Overall sales revenue was up 9.8% on the previous year. Middle East/Africa saw a 19.7% increase in sales revenue and a 29.5% gain in earnings before income taxes (EBIT). In the Asia/Pacific region, sales revenue increased 48.5% as a result of significantly improved order intake. EBIT for Asia/Pacific was twice that achieved in 2004. The Americas region also recorded strong growth in sales revenue, up 31.3%, with a 4.1 million improvement in EBIT, which was up 40.1%.
COMMENT 2005 was a year of progress and change for KSB. Now under new leadership, KSB appears to be confidently riding the wave of the sustained growth in the global economy in 2006, regularly reporting strong pump and valve order activity in international markets in the power generation, chemicals, petrochemicals and water and wastewater sectors (see Orders, page 11). ■
Key Figures (E million) KSB Group
Year ended 31.12 2004
2003
2002
2001
1390.3
2005
1266.8
1178.1
1180.2
1161.9
734.4 278.0 377.9
682.2 270.4 314.2
– – –
– – –
– – –
Consolidated Order Intake
1468
1294
–
–
–
Earnings before Interest and Taxes
44.2
33.6
39.7
43.9
36.8
Net Profit for the Year
22.6
14.7
18.7
19.6
14.1
Sales Revenue Of Which: Industry and Building Services Water and Waste Water Energy & Mining
Capital Expenditure No of Employees Of Which: Europe Middle East/Africa Asia/Pacific Americas Contact Details KSB AG Chairman of the Board of Management: Address:
45.2
33.7
60.4
31.3
29.0
12 963
12 467
12 281
11 948
12 071
7287 356 3712 1558
7284 351 3484 1404
– – – –
– – – –
– – – –
Heinz-Jürgen Otto 67225 Frankenthal Germany
Web: www.ksb.com
Recent Events • Heinz-Jürgen Otto joined KSB on 1 April 2006 as chairman of the board of management, replacing Josef Gerstner, who unexpectedly left the company in July 2005. • KSB’s PumpDrive variable speed system, launched at the Frankfurt ISH fair in 2005, attracted 1000 orders from customers in building services, industry and other sectors within the space of six months in Germany alone. • In South Africa, KSB stepped up its collaboration with US subsidiary GIW Industries Inc in 2005. Slurry pumps developed in the USA are manufactured locally by KSB’s South African company in Johannesburg to serve the needs of the African continent.
6