Grundfos, the Danish manufacturer of water pumps widely used in the food and beverage industry, has reported that for the first six months of 2003 it achieved a pre-tax profit of DK374 million (€50.3m) - an increase of DK162 million compared with the same period last year.
According to group president Jens Jørgen Madsen, this is the result of a combination of growth in sales, tight cost-control and improved efficiency.
"The seeds to this growth figure were sown last year when we implemented extensive cost-saving measures throughout the group following a first half-year of unsatisfactory growth in earnings. We have maintained this tight cost control in our 2003 budget, and costs are under control in all companies," said Madsen.
Group sales reached DK5,329 million during the first six months of 2003 - an increase of DK130 million compared with the first half of 2002. The real growth in sales amounts to just below 10 per cent, but declines in most exchange rates - other than the Danish krone and the euro - have reduced the growth in sales for the first half-year of 2003 to 2.6 per cent, measured in Danish kroner.
The growth in sales has been particularly noticeable in the Far East and Eastern European regions. As many as 20 sales companies note double-digit growth rates - top scorers include India with 63 per cent, Russia with 45 per cent, China with 26 per cent and Japan with a 16 per cent growth rate.
The Southern European and American regions only recorded a 1-2 per cent growth in sales; yet these regions note greater increases over the past few months.
Germany accounts for a particularly noticeable increase: following several years of stagnation, the Grundfos company contributes with a 6 per cent growth rate, and due to the size of the company, this creates additional sales worth €6 million, compared to the first six months of 2002.
"We have taken another step towards the two main objectives that we have set - a pre-tax earnings objective of 10 per cent in 2005, combined with a continued sales growth strategy, requiring us to reach a turnover of €2 billion in 2007," Madsen said.