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”...
COPENHAGEN, Denmark - 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.”
- A full interview with Grundfos CEO Mads Nipper will feature in the April-May edition of WWi magazine.