COMPANY WATCH

February 2013 Pump Industry Analyst9

KSB Group, Germany

Key Figures (E million)Year ended 31.12

2012 2011

Order Intake 2257.1 2132.3

Sales Revenue 2269.4 2091.0

Employees (31.12) 16 200 15 674

COMMENTKSB delivered order growth in all four geographic regions - Europe, Asia/Pacific, Americas and Middle East/Africa - during 2012 and in all three business units - Pumps, Valves and Service.

Provisional figures show that KSB’s 2012 group order intake was E2257.1 million, E124.8 million higher than in 2011. In the European market, order intake increased moderately on a year ago. Germany’s KSB AG, with its relatively high share of power plant business, reported a 2.1% decrease in order intake to E801.8 million. At the same time, KSB posted double-digit growth in orders received in the Asia Pacific, Americas and Middle East/Africa regions. Order intake was driven by demand from the mining sector in the Americas, the chemical and petrochemical industries in Asia, and the water and wastewater industry in the Middle East and Africa.

The group’s sales revenue increased 8.5% year on year to E2269.4 million. The highest gains came from the pump business including automation products and drives. Sales revenue for valves and service activities were up by an even higher percentage.

The largest absolute growth contribution came from the companies in Europe, mainly from deliveries to the chemical, petrochemical and construction industries. A number of European companies, including KSB SAS in France, enjoyed double-digit growth in sales

revenue, while KSB AG increased its sales revenue by 2.1% to E828.2 million.

The three non-European regions recorded higher percentage growth in sales revenue than Europe. In Asia Pacific, this was mainly due to the invoicing of large orders in the power generation sector, in the Americas to orders from the mining industry, and in the Middle East to growth in the building services business.

Thirteen companies in Europe and China which were consolidated for the first time contributed to the growth within the group in 2012. Their total order intake was E39.4 million with sales revenue of E39.1 million.

Employee numbers increased 3.4% year on year to 16 200 in 2012. The 13 newly consolidated companies, accounting for 499 employees at year end, contributed significantly to the total increase of 526. A number of individual companies have also increased their staff, primarily to implement strategic projects.

KSB says that earnings before income taxes for 2012 should reach the targeted E135 million and that the group should exceed 2011’s profit level.

Looking ahead, KSB expects order intake and sales revenue to both increase in 2013. Strategic projects should contribute significantly to this growth, while expanding the standard business and continuing to develop the service and aftermarket business will be important priorities. ■www.ksb.com

SPX Corp, USA

Key Figures (US$ million)Three months ended 31.12

2012 2011

Revenues 1435.7 1258.1Of Which:Flow Technology 728.2 565.4

Cost of Products Sold 1033.2 912.2

Selling, General and Administrative 265.6 217.2

Operating Income/(Loss) (163.1) 107.3

Segment Income 173.8 160.5Of Which:Flow Technology 90.8 85.3

Net Income 140.8 63.5

Year ended 31.12 2012 2011

Revenues 5100.2 4536.9Of Which:Flow Technology 2682.2 2042.0

Cost of Products Sold 3725.2 3262.2

Selling, General and Administrative 1020.9 911.3

Operating Income/(Loss) 9.0 286.5

Segment Income 505.9 520.6Of Which:Flow Technology 285.1 268.4

Net Income 262.0 185.6

COMMENTSPX Corp finished 2012 with its strongest financial quarter of the year, highlighted by sequential revenue growth across all three segments and an increased contribution from ClydeUnion.

“2012 was a year of strategic transition in which we continued our efforts to further align SPX to serve end markets with attractive near and long-term growth potential. We are in a strong financial position with significant liquidity and have started 2013 well positioned for future growth,” said Christopher Kearney, SPX chairman, president and CEO.

Flow Technology’s revenues for the fourth quarter of 2012 were US$728.2 million compared with US$565.4

million in the fourth quarter of 2011, an increase of US$162.8 million, or 28.8%. Organic revenues decreased 0.7%, while completed acquisitions and currency fluctuations favourably impacted revenues by 29.5%.

Segment income was US$90.8 million, or 12.5% of revenues, in the fourth quarter of 2012 compared with US$85.3 million, or 15.1% of revenues, in the fourth quarter of 2011. The decline in segment income margin was due primarily to reduced profitability in Europe, a higher mix of food & beverage system project revenue, which carries a lower profitability margin, and 50 basis points of dilution from ClydeUnion. ■www.spx.com