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Pump giant Grundfos turns around plummeting profits
Danish company Grundfos reported sales growth of 0.8% in 2015 despite the global pump market being called ¡°essentially stagnant¡±.
Earnings before interest and taxes were reported at DKK 2.0 billion (US$296.8 million), compared to DKK 861 million (US$127.8 million) the year before.
The group's profit after tax was DKK 1.45 billion (US$215.1 million) compared to DKK 503 million (US$74.6 million) in 2014.
Group revenue rose to DKK 24.8 billion (US$3.7 billion), representing sales growth of 5% in Danish kroner compared to 2014.
From 2012 the company had been reporting declining profits despite net turnover increasing marginally year on year, so the 2015 results will be a welcome turnaround.
In a financial statement, the company said that ¡°global competition has been noticeably increasing¡±.
Grundfos said that markets including Italy, Poland, Hungary, Turkey, the Czech Republic and the Baltics, all show good growth figures.
Sales rose by 12% in the US, the world's largest pump market, while sales growth was 18% in the South American markets.
Mads Nipper, CEO of Grundfos, said: ¡°We have met our expectations, so we are satisfied with the result. That being said, I have to say that the world market has been a mixed bag. Russia - previously one of our most rapidly growing and profitable markets - is dropping sharply, and China's growth machine has come to halt. We are seeing our strongest growth in North and South America.¡±
[Ãâó = Water World / 2016³â 3¿ù 16ÀÏ]
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