Interim results - continued growth at Grundfos

Sales have increased by 7 per cent, and turnover reached DKK 6.356b.

The past six months have fully lived up to the Group Management's expectations, and both turnover and earnings are as budgeted. This means that the expectations for the entire year of 2005 are unchanged, which entails a growth in sales of 7 to 8 per cent and pre-tax profits of DKK 1b. Earnings for the first six months as well the entire year of 2005 are expected to be a little lower than the record-breaking result in 2004. Group President Jens Jørgen Madsen explains:

"As we anticipated, the cost of materials continued to soar. The US dollar and related currencies have continued their decline, and Grundfos is still investing heavily in globalisation of the production apparatus as well as product and market development. This means that turnover and profits are very much within the budget for 2005, and much to our satisfaction we are registering continued stable growth in strategically important markets such as Eastern Europe and the Far East."

In local currencies, real sales growth amounts to 8 per cent and is distributed as follows:
· The Far East showed the greatest sales growth of 17 per cent
· In Eastern Europe sales increased by 13 per cent
· In North America sales increased by 10 per cent
· In Western Europe sales increased by 2 per cent.

"The growth is on a par with our expectations for 2005, which makes us believe that we are on course to reach our main objective: a sales turnover in 2007 of EUR 2b or approx. DKK 15b", says Jens Jørgen Madsen.

During 2005, the Grundfos Group will open new factories covering a total area of 55,000 m2. Apart from factories in India and Russia, which were opened in spring, the increased production capacity also covers China and Hungary. In addition, preparations for production in Mexico are under way.