Pumps manufacturer Grundfos has reported organic sales growth of 0.5 per cent for 2016, helped by a strong second half.
Taking account of acquisitions and divestments, sales at the Denmark-based company fell by 0.5 per cent to DKK 24.7 billion ($3.53 billion), and earnings before interest and tax (EBIT) were down 9.4 per cent to DKK 2.2 billion.
Growth was achieved in markets in Germany, China, and UK; as well as other markets in Europe and Asia. Sales in the US declined, following a strong year in 2015. Markets in Russia and the Greater Middle East “continued to suffer from low activity levels driven by low oil prices and financial uncertainty,” the company said.
“It is estimated that the global pump market served by Grundfos stayed flat in 2016. Our modest full-year sales growth therefore means that we have bolstered our position as the globally leading pump solutions provider. After a particularly challenging first half of 2016, we are happy that sales gained momentum in the second half of the year, “ said Grundfos group president and chief executive Mads Nipper.
“Competition in our markets is fierce, and we constantly focus on offering innovative solutions and services, at the same time as lowering costs. We accelerated investments in strategic focus areas such as our service business, and development of digitally-enabled offerings, in 2016, and we will continue our transformation in these areas in the coming years,” Nipper added.
Based on organic growth, EBIT margin strengthened to 9 per cent, up from 8.2 per cent in 2016.