At the end of the first quarter of this year it is with regret that Group Management finds that the uncertainty in the market growth, which also characterized the last quarter of 2001, still exists.
The expected signs of growth within the building and industrial sectors in the first quarter of 2002 have failed and it is due to this development that Grundfos finds it necessary to adjust costs in those Grundfos companies where the cost development is out of keeping with the growth in sales and profits. Among those companies are the Danish companies: Grundfos Management A/S, Grundfos A/S, and Grundfos Danmark A/S.
As part of the required cost adjustment it will regrettably become necessary to carry out staff reductions, which will primarily be carried out among the monthly paid employees in the companies mentioned above. The reduction will not reach the same level as the reduction carried out in the fall of 2001, when Grundfos A/S had to lay off 275 employees within both production and administration.
It would be irresponsible not to react to the recession which has been noted in the markets – and which has recently been influenced by the uncertain political situation in the Middle East. The Grundfos Group maintains its overall growth targets and main strategies, but they will be carried through at a slower rate. Hereby Grundfos takes the necessary measures in view of the considerable uncertainty in the market development, which still prevails within our area of industry.