RCS - KSB SE & Co. KGaA - Half Year Report

KSB SE & Co KgaAAnnouncement

31/07/2024 09:45

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RNS Number : 5637Y  KSB SE & Co. KGaA  31 July 2024

 KSB SE & Co. KGaA / Key word(s): Half Year Report

KSB achieves solid growth in the first half of 2024 - undeterred by the
 economic headwind

31.07.2024

The issuer is solely responsible for the content of this announcement.

KSB achieves solid growth in the first half of 2024 - undeterred by the
 economic headwind

 ·      Increase in order intake, sales revenue and earnings (EBIT)

 ·      KSB SupremeServ Segment continues to develop its business

 ·      Annual forecast confirmed

 FRANKENTHAL: In the first half of 2024, the Frankenthal-based pump and valve
 manufacturer KSB built on the strong development of the 2023 financial year,
 increasing the key financial figures for order intake, sales revenue, earnings
 before finance income / expense and income tax (EBIT) compared with the
 prior-year period.

 In the first six months of the 2024 financial year, KSB increased its order
 intake by 2.2 % to € 1,645 million. The KSB SupremeServ Segment achieved
 the largest increase, growing by 7.2 % to € 550 million, on the back of a
 strong spare parts business, especially in the Energy and Mining operating
 segments. The Valves Segment increased its order intake by 2.5 % to
 € 226 million, driven by major projects. This growth was opposed to a
 slight decline in orders of 0.7 % to € 869 million in the Pumps Segment.
 While the Energy Market Area achieved growth of € 38 million compared with
 the previous year, especially due to major orders, the economic environment
 contributed to a € 25 million decline to € 677 million in order intake
 in the Standard Markets. The Mining Market Area also concluded the first half
 of the year with a decline (€ - 19 million), as compared with the
 prior-year period that was characterised by major orders.

 KSB increased sales revenue by 3.7 % in the first six months of the year to
 € 1,439 million. The KSB SupremeServ Segment contributed to this growth
 with a 7.5 % increase to € 491 million - based in particular on the spare
 parts business for the Energy Market Area. The Valves Segment followed with
 growth of 5.1 % to € 193 million, while the Pumps Segment recorded an
 increase of 1.1 % to € 754 million. The Energy Market Area achieved
 growth of + 17.4 %, while the Mining Market Area and Standard Markets were
 down marginally from the previous year.

 KSB increased its EBIT in the first half of the year by 3.7 % to
 € 116.3 million (prior-year period: € 112.1 million). This equates to
 an EBIT margin of 8.1 %, as in the previous year. The KSB SupremeServ
 segment made a significant contribution, increasing EBIT by 11.8 % to
 € 99 million (prior-year period: € 88.6 million). The Valves Segment
 ended the first six months of the year with an almost break-even EBIT of
 € - 0.3 million. At an operational level, this equates to an improvement
 of € 4.5 million, as EBIT in 2023 (€ 4.4 million) was influenced by a
 one-off insurance compensation of € 10.2 million. With an EBIT of
 € 17.6 million, the Pumps Segment was not quite able to match its
 comparative prior-year EBIT of € 19.2 million. While the Energy and Mining
 Market Areas achieved higher earnings compared with the prior-year period, the
 Standard Markets did not quite reach the previous year's EBIT level.

 KSB plans to replace the current SAP corporate software solution with SAP
 S/4HANA in the next three years. It views this changeover as a great
 opportunity to align the business processes even more strongly with the
 current corporate strategy. In addition, the new solution offers the advantage
 of faster participation in SAP's innovation cycles. The major project had a
 negative impact on EBIT in the first half of the year, with external costs of
 € 2.3 million. A burden on earnings in the lower two-digit million range
 is expected for the second half of the year.

 CEO Dr. Stephan Timmermann expressed his satisfaction: "We are pleased with
 the solid business development that we have achieved, despite the absence of
 stimuli from the global economy. Restraint with regard to large investments
 and the crisis-hit construction industry continue to impact our Standard
 Business. Although the weak economic situation has stabilised somewhat in
 Europe, the economy has slowed down noticeably in China. We are consistently
 pursuing our growth strategy in the USA."

 Even taking into account the costs for introducing SAP S/4HANA, KSB has
 confirmed the forecast for the 2024 financial year that was published at the
 beginning of the year.

 KSB is a leading international manufacturer of pumps and valves. The
 Frankenthal-based Group has a presence on five continents with its own sales
 and marketing organisations, manufacturing facilities and service operations.
 With a workforce of around 16,000, the KSB Group generated sales revenue of
 approximately € 2.8 billion in 2023.

31.07.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS News
 - a service of EQS Group AG.

The issuer is solely responsible for the content of this announcement.

The EQS Distribution Services include Regulatory Announcements,
 Financial/Corporate News and Press Releases.

Archive at www.eqs-news.com

 Language:     English
 Company:      KSB SE & Co. KGaA
               Johann-Klein-Strasse 9
               67227 Frankenthal
               Germany
 Phone:        +49 6233 86-2020
 Fax:          +49 6233 86-3435
 Internet:     www.ksb.com
 ISIN:         DE0006292030
 WKN:          629203
 Indices:      SDAX
 Listed:       Regulated Market in Dusseldorf, Frankfurt (Prime Standard); Regulated
               Unofficial Market in Berlin, Hamburg, Munich, Stuttgart, Tradegate Exchange
 EQS News ID:  1957565

 

 End of News  EQS News Service

 

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