Member Article

Grundfos say sluggish growth caused by stagnant market

Danish pump giant Grundfos, who operate a Wearside base, have reported continued stagnation in their market.

The Grundfos Group, which encompasses the Sunderland-based manufacturing division, has reported only modest growth in the first half of 2013.

The business reported a 3% growth and turnover of £1.47bn in the first six months of 2013.

Group President and CEO Carsten Bjerg said: “At best, the pump market is stagnating, and when seen in that light, our modest growth is very reasonable.

“The first half-year is always weaker than the second half-year in Grundfos, and it is our hope that the figures for growth, turnover and earnings will develop positively for the entire year.

“So far, market developments have not been favourable to us. Some markets do not perform as we had planned. The half-year result is only just satisfactory.”

China and Eastern Europe presented the most significant growth figures at 12% and 5% respectively.

Mr Bjerg added: “Our global sales organisation is making a great effort by being close to the customers. At the same time, we continuously monitor our level of cost, adapt the business and keep a watch on expenses.

“Everything is under control, and we expect the 2013 result for the year to show satisfactory growth for the Group. We are pleased that our financial strength remains more than intact with an equity ratio of 66.2 per cent as against 64.7 per cent after the first half-year last year.”

During the first half of the year, the business established a new factory in Serbia, opened a new regional headquarters in Chicago and developed a new sales company in Columbia.

This was posted in Bdaily's Members' News section by Tom Keighley .