FRANKENTHAL: On Friday, pump and valve manufacturer KSB issued an ad hoc statement announcing lower forecast figures for the current year than those published in March 2014. The reassessment was made on the basis of weaker sales revenue and earnings for the first six months of the year. However, the company still expects higher order intake for the full year; in the first half of the year, order intake rose by 3.2 % to € 1,131.9 million.

Sales revenue as at 30 June 2014 (according to preliminary figures) totalled € 1,011.6 million, 7.2 % down from the comparative prior-year figure (€ 1,090.1 million). This decline by € 78.5 million is attributable to changes in exchange rates (€ 50.7 million) and delays in current projects.

The weak sales revenue development and continued low profitability in the power plant business resulted in markedly lower half-year earnings (before taxes), which, according to preliminary figures, amount to € 20.7 million (comparative prior-year figure: € 48.8 million).

In contrast to its original forecast for the year, the company no longer expects sales revenue and earnings to grow. Instead, it expects sales revenue to fall moderately short of prior-year levels and earnings before taxes to range between € 60 and € 85 million. These figures in­clude negative impacts on earnings in the second half of the year as a result of the restructuring measures the company plans to implement.

Based on the favourable order intake in the current year, the company expects a tangible improvement in its sales revenue and earnings in 2015.

On 13 August 2014, KSB will publish its half-year financial report.

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