"We knew it would take hard work and focus to increase our turnover, streamline the organization and win market share during 2012. But I am happy to say that we have succeeded. Our expectations for the year have been met," CEO and Group President of Grundfos Mr. Carsten Bjerg says.
"Despite difficult conditions in certain markets, we were able to deliver a growth of 6.7 per cent in the net turnover to DKK 22.6 billion. The level of investment in research and development remained high at DKK 1.4 billion and we reached a profit before tax of DKK 1.9 billion. We also provided - despite a historically high level of investments at DKK 2 billion - a positive free Cash Flow for the year and cemented the strong liquidity position, we have created in recent years with an interest bearing net deposit of DKK 2.6 billion”, Mr. Carsten Bjerg explains. “This represents an improvement of DKK 5 billion over the last four years. In addition, we have managed to increase our equity ratio to 65.3 per cent. In other words; we have never been stronger", Mr. Bjerg adds.
Grundfos has always been committed to invest and develop new products and technology, and in the beginning of 2012 a new and high-tech generation of energy-efficient circulator pumps, ALPHA2 and MAGNA3, was presented. Besides the extremely low energy consumption the MAGNA3 offers a wireless interface, GRUNDFOS GO, which makes it possible to communicate with the pump via Smartphone or Tablet.
"The new products were received very well by our customers, and we hope that they can support and expand our position as the world leader within our industry," Mr. Carsten Bjerg states.
Despite the global debt crisis Grundfos is still experiencing modest growth in the mature markets in Western Europe, including Germany, Denmark and the UK. The debt crisis in the Southern European countries such as Italy, Greece and Spain, is affecting Grundfos too, but the Group is having strong growth in Eastern Europe, especially in Russia. The North American markets are also doing very well, including USA and Mexico in particular, which is growing by 32 per cent. Sales in China continue to grow, and several other Asian markets are reporting double-digit growth, such as Malaysia and Thailand. Also in the Middle East Grundfos has achieved a solid growth rate of 19 per cent.
"Our organization has been very good at adapting and seeing new possibilities. We have been good at selling products with greater value for our customers, which is indeed rewarded by the customers. A survey shows a very high customer satisfaction with our product’s quality and especially our employees' ability to service the customers and their needs. And among our employees the satisfaction and motivation is enormous and has been for years. Both of these results are perhaps even more important than our financial strength and our strong products, as the basis for the realization of our ambitions in the coming years ", Mr. Carsten Bjerg tells.
In 2013, the net turnover growth is expected to be in line with or slightly better than in 2012. Grundfos is also planning new investments of around DKK 2 billion, which is the highest level of investments in the history of the company. It includes continued product development and the establishment of new production facilities, including two new factories in Serbia and Hungary. A number of new products will also be presented soon.
"Our focus is to create our own growth by capturing market shares and invest in new areas with potentials. We will focus our attention on areas of the global market that have a particularly strong demand for our solutions. This goes especially for the Asian countries, where we will strengthen our presence in India, but also the United States, where we aim to continue our expansion. Finally we are moving into the water sector to create new and interesting business opportunities", says the CEO and Group President in Grundfos.
See the Annual Report here.