“Targeted efforts in bringing down production and material costs and improving prices and product mix have improved our margins significantly, and we have maintained our high focus on the fixed costs. We are thus satisfied with the development in the earnings during the first six months. But we need to re-create growth in sales, and this will be a long haul in a difficult market,” said Grundfos group president Mads Nipper.
The Danish pump company has seen growth return in China as well as in other Asian markets including India. Most of Latin America showed positive signs in the first half of 2016, while OEM sales to large boiler manufacturers delivered solid growth. Sales were down in the US market following a very strong performance in 2015. The Russian market remains challenging for Grundfos, while sales in Europe are at a similar level to last year. Sales also declined in the Middle East where the market was affected by the fall in oil prices.
Grundfos says that accelerated efforts within technical innovation, digital solutions and services will pave the way for renewed growth.
“We are continuing the execution of our 2020 strategy, where Grundfos will become an even stronger supplier of systems and knowledge to our customers,” said Nipper.
“We will in the coming period focus even more on digitalization, service and new technological innovation, which will further strengthen our leading position in the market. This is a major change for Grundfos, but also a unique opportunity to play an even bigger role in solving the world’s challenges around water and climate change.”