Record earnings and profits for Grundfos Pumps
The sales of Grundfos Pumps grew by 10.4% to £1253 million last year. The company’s sixtieth year also saw its largest-ever pre-tax profit of £116 million, despite relatively high prices of materials and a weak US dollar. 2005 became the third consecutive year of record earnings. All business areas contributed to sales growth: 20% in Eastern Europe; over 40% in Russia; 16% in Asia; and 13% in North America. The emphasis on research and development continued with a highest-ever investment of £55 million and capital investments again exceeding DKK1 billion (£93 million). Much of the capital investment was spent on establishing new factories in China, India, Russia and Hungary, with a total production area of 55 000 m2. Group president Jens Jørgen Madsen, says, ‘Based on a very positive second half of 2005, we have entered 2006 full of optimism. So far we have had a very strong start, with an increase in turnover during the first two months of 13%. The outlook for the coming months is also fairly positive, so we are well on our way to maintaining high sales growth for 2006.’
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