FRANKENTHAL (dpa-AFX) - Pump and valve manufacturer KSB felt the impact of a challenging environment, a strong euro, and a higher sales mix of lower-margin products at the start of the year. Revenue rose by just 0.4 percent year-on-year to nearly 712 million euros, the SDax-listed group announced on Tuesday. Excluding currency headwinds from the strong euro, revenue would have increased by just over three percent. The stock retreated by approximately two percent in the opening minutes of trading.

Earnings before interest and taxes (EBIT) fell by twelve percent to around 30 million euros, driven in part by a higher proportion of lower-margin products in the sales mix. Without the positive contribution from the first-time consolidation of KSB Pumps Arabia, the operating profit would have seen an even sharper decline. Order intake surged by 15 percent in the first quarter to approximately one billion euros, primarily bolstered by a major contract for a power plant in Eastern Europe.

The existing headwinds of a weak global economy are now being compounded by the conflict in Iran, stated CEO Stephan Timmermann in the release. Nevertheless, he reaffirmed the full-year targets. For 2024, order intake is still projected to range between 3.1 billion and 3.5 billion euros, compared to the record 3.2 billion euros achieved last year. Revenue is still expected to land within a corridor of 2.9 billion to 3.2 billion euros.

Earnings before interest and taxes (EBIT) are forecasted to come in between 220 million and 265 million euros. Consequently, both revenue and earnings could potentially see either growth or a contraction relative to the previous year./niw/zb