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Last year’s cuts are paying off for Grundfos

TheCopenhagenPost
March 7th, 2016


This article is more than 8 years old.

Pump manufacturer saw a significant increase in profitability despite a slow market

CEO: results show better focus and priorities (photo: Grundfos)

With the release of its 2015 financial results, the Danish pump manufacturer Grundfos has revealed a significant increase in profitability, despite moderate sales growth due to stagnation in the global pump market.

Sales were up just 0.8 percent in local currencies, resulting in a group turnover of 24.8 billion kroner, 5 percent up on 2014. However, its pre-tax profit was just over 2 billion kroner, compared to 881 million kroner last year.

The improvement in earnings is in part due to an extensive drive for cost savings last year, which included the equivalent of 850 job cuts.

READ MORE: Heavier cuts than anticipated at Grundfos

“Our earnings and cash flow have substantially improved thanks to better focus and priorities, among other things,” said Mads Nipper, the company’s CEO.

“We are retaining or gaining market share in key strategic markets. And the group strategy of focusing on our core business and improving customer relationships is working.”


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Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

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Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”