Abstract
German pump and valve manufacturer KSB says it is feeling the effects of the economic crisis caused by the coronavirus pandemic.
KSB reports that the Covid-19 crisis has had a significant impact on first quarter 2020 sales revenue, which fell E17 million to E518 million. The lower sales revenue also resulted in a decrease in EBIT, although EBIT continues to remain positive.
First quarter 2020 order intake of E588 million was just slightly below expectations, but down on last year's E669 million which was positively impacted by two major orders.
“The economic crisis triggered by coronavirus has also affected KSB,” said KSB CEO Dr Stephan Timmermann. “While order intake was comparatively good, the first signs of weak performance have emerged in sales revenue and EBIT. In particular the government-ordered closures of our large factories in India, Pakistan, South Africa and Spain in the second half of March caught us unprepared, as did postponed service orders for planned maintenance.”
All three of KSB's segments – Pumps, Valves and Service – saw declines in sales revenue and order intake in the first quarter of 2020.
Sales revenue was down 5.1% in Pumps, 2.4% in Valves and 0.2% in Service. All regions saw sales revenue decrease, with government-ordered closures in Asia, South Africa and Europe in particular having a negative impact.
The largest percentage drop in order intake was in Pumps which fell 15.4%. Service order intake was down 6.9% due to postponed maintenance orders and the sale of a French service company (see Pump Industry Analyst, January 2020). Valves saw order intake ease 2.8%. KSB says that regionally, North and South America are still posting growth in order intake, while all other regions experienced declines.
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