Low interest rates and the continuation of an expansionist monetary policy in many industrial states shaped events on the capital markets during 2013. The additional levels of liquidity enabled the central banks to calm the markets somewhat, helping to combat the higher levels of volatility of the past few years triggered by the financial and debt crisis. The monetary policy measures were also intended to favour an economic upturn. This environment lent the equity markets renewed impetus. Many of the major indices were able to grow again, reaching new all-time highs.

Despite this growth, and after a strong start to the year, prices began to falter again across the world’s stock markets in May. This sudden fall was sparked by the US Federal Reserve’s announcement that it intended to restrict the buying up of bonds. Investors were unsettled by the prospect of liquidity being gradually reduced. Yet, by the middle of the year, the prevailing opinion on the capital markets was that interest rates would remain low for some time to come despite the Fed’s plans. Investors were duly reassured that a monetary policy turnaround was not imminent, clearing the way for an upwards movement on the stock markets during the second half of the year.

In Europe, the European Central Bank cut interest rates by 25 basis points in May and then again in November, to a record low of 0.25 %. These interest rate reductions also had a positive impact on the stock markets.

In this environment, the DAX recorded a gain of 24 % for 2013, ending the year on 9,552 points, only just below its alltime high of 9,594 points.

The EuroStoxx, meanwhile, grew by 17 %. This slightly smaller increase can be attributed to the fact that the fundamentals for Europe as a whole were somewhat weaker than the German equivalents, as was also reflected in the valuations.


The US Dow Jones index ended 2013 close to 27 % up on the previous year, while the Nikkei 225 in Japan recorded a considerable gain of 54 %. The growth policy pursued by the Japanese government was a key factor in this performance.


The KSB shares were also able to grow in 2013. The year-end price for the preference shares was around 6 % up on the previous year, with growth of around 4 % recorded by the ordinary shares.

At the start of the year both shares initially appeared relatively robust, moving in a strong upwards direction. By the spring, however, prices had started to fall, with ordinary shares at times dipping below the level recorded at the start of the year.

Following a sideways movement over the summer months, both shares began to rise strongly again, with the more liquid preference shares even recording a new high for the year in October. Although some of these gains were shed again over the subsequent months, both the preference and the ordinary shares ended the year valued more highly.

The company’s market capitalisation at the year end was € 804.3 million, around 5 % higher than at the previous year end.


The Board of Management and Supervisory Board will propose to the Annual General Meeting on 14 May 2014 that an unchanged dividend of € 12.26 per preference share and € 12.00 per ordinary share be distributed.


Earnings per share are down on the previous year as a result of the fall in consolidated earnings. They totalled € 37.38 for ordinary shares, compared with € 42.48 in the previous year, and € 37.64 for preference shares compared with € 42.74 in 2012.