Best result ever for Grundfos

The international debt crisis and the increasing oil prices – as well as growing awareness of
climate changes – are the reasons for Grundfos’ focus on internal process efficiency and global sustainability. This reslted in the group, owned by a private foundation and with headquarters in Bjerringbro, DK, and staff in 55 countries, being able to present an annual report for 2010 which Group President, Carsten Bjerg, describes as the best ever for Grundfos, a company that has never had deficit since the start of the company in 1945.

The 2010 turnover reached 19.6 billion DKK (2.6 billion Euro) with profit before tax reaching 2.4 billion DKK (320 million Euro), compared to 17.1b DKK (2.28b Euro) and 0.9b DKK (0.12b Euro) respectively in 2009. With this result the company in 2010 returned to a level of activity equal to that before the recession. At the same time, the Group obtained a record profitability of 12.2 percent of turnover.

- This is a good result. Even better than we hoped. It will be used for investments in new growth. For instance, we shall soon be launching new energy efficient solutions that will no doubt attract attention, and we shall continue the globalisation of our activities in growth markets. In this respect I am not talking Western Europe or Denmark, said Mr Bjerg.

Grundfos investments in technology and product development will reach one billion DKK (130m Euro) in the coming year. In addition investments in production equipment will be doubled, for instance with new production facilities in Russia, Serbia and India.

- The fact that, in a difficult and challenging time, we managed to expand the technological and commercial lead in the market and, at the same time, managed to limit costs, is a strong example of management’s and staff’s huge performance and co-operation, said the Group President. – I am very proud that we made this possible!

This is why it was natural to appreciate Grundfos staff by paying one week’s extra wage after the positive result of the combined efforts was obvious in 2010. Today an estimate of every tenth newly installed pump worldwide wears the Grundfos name. At the turn of the year the Group even managed to abolish all debts with an interest-bearing net deposit of 2.2 billion DKK (0.23 billion Euro), compared to net debts of 0.1 billion DKK (13m Euro) at the start of the year. The independence of the company has been strengthened as the solvency ratio improved from 54.6 percent to 60.6 percent.

- Sustainability is the prerequisite for the sound growth we all want, Mr Bjerg added, commenting the annual result as well as the company’s optimistic expectations. Mr Bjerg admits that the economic low of the continuing international debts crisis may not have been reached yet, although there are some positive signs in the international economy.

Grundfos’ economic growth will be used for continuous development and growth. However, the growth must be sustainable and so the company maintains an ambitious goal of never emitting more carbon than in 2008. Due to Grundfos’ special ownership, the profit gained will be reinvested directly in the business, with special focus on investments in technology and product development.

Click here to read the Annual Report 2010