Yet another solid annual result from Grundfos

Never before has Grundfos sold so many pumps as in 2011 and the pump giant is once more able to present a very fine annual account with reasonable growth and a very satisfactory profit.

- The sales development was precisely as budgeted with an 8 percent growth and we are very pleased that we can help even more people fulfil their basic requirements for water and comfort. One of the reasons why we are able to generate such a large growth even in hard times is that we succeed in our focus on green and sustainable solutions. However, the total 2011 result derives in particular from dedicated efforts throughout the Group, said a very satisfied Group President, Carsten Bjerg.

A large number of West European markets are somewhat stagnant at the moment and so Grundfos is expanding turnover in other markets.

- We anticipate a lower growth level in the European market for a number of years to come, so here our challenge will be creating growth even without help from a growing market. We are not afraid to do this and we invest in this. We are also pleased that we managed to globalise our business in time and that we have already established our business with strong positions in those parts of the world where economic growth will concentrate in the coming years. These areas are the BRIC countries but also countries like Turkey, Ukraine, Thailand, Vietnam and South Africa as well as the countries in the Middle East, the Group President explained.

Profit is invested in the company
Net turnover in 2011 reached DKK 21.2 billion with DKK 19.6 billion in 2010, which is an 8 percent increase. R&D costs as well as sales and administration costs increased by 13 percent. This is a reflection of the fact that Grundfos’ ownership structure allows us to make long-term investments in a further strengthening of competitive power. DKK 1.2 billion was invested in research and technology development. The primary result is therefore DKK 2.0 billion (9.5%) whereas in 2010 it was DKK 2.2 billion. The Group’s interest-bearing net assets are now DKK 2.8 billion with DKK 2.2 billion at the turn of the year. This means a growth of DKK 5.0 billion during the past three years. Cash flow from operation is DKK 2.2 billion and the equity ratio in 2011 improved from 59.9% to 63.3%.

Ambitions are raised
- The realised results and the following economic solidity make us raise our ambitions. We are pumping even more resources into our developing areas and our investments in new production lines and new factories will reach historic heights in 2012. In addition, our efforts to expand the business into water treatment will be boosted, said Mr Bjerg.

The ambitions in production are not failing, either. A number of new, energy efficient circulator pumps were introduced recently, expected to contribute to increased market shares, turnover and profit. Investments in other areas are also focused on the future.

For instance, in 2011 Grundfos established a global competence centre within water supply and waste water with the intention of increasing growth in this area, new sales companies are established in South America and factories are built in Singapore, Serbia and Hungary.

Sustainability and good business are connected
In 2008, Grundfos set an ambitious goal concerning our own carbon emission, deciding that, regardless of business growth, we must never emit more carbon than in 2008. This goal was reached year by year. Also in 2011. In fact, we have reduced carbon emission by 10.5% since 2008 even though sales have increased by more than 10% in that period.

- Work with climate footprints in our factories is very promising. Especially because the results were obtained by improved energy efficiency. By taking our own medicine we show what is possible through the use of energy efficient and energy saving products and systems. The world needs many more people to do the same. We strive to attract attention to the fact that pumps are one of the great potentials of energy saving. For instance, the correct motor technology may reduce the energy consumption of pumps by up to 60 percent, Mr Bjerg explained.

Grundfos today employs 17,481 staff worldwide, of whom 4,603 are employed in the Danish companies.

Click here for full version of Annual Report 2011
Click here for full version of 2011 Annual Statement


- Please note that the Annual Report is in Danish.