KBA has reported a rise in group sales by over 10 per cent to nearly €1.3bn and a positive operating profit of over €30m before special items, more than triple that of 2011 (€9.9m) in its preliminary figures as operating and free cash flow was also positive.
Dave Lewis, director and general manager sheetfed presses, KBA Australasia told Australian Printer “It proves that it is still possible to make some profit in press manufacturing. This really gives a feeling of some security going forward and allows us to continue to invest in R&D.”
Lewis says, “Both KBA Australasia and KBA Asia Pacific are profitable with many installations last year. In Australia, mainly packaging businesses but some commercial, speciality and cross over customers are investing in our equipment, and in Asia there is still a lot of commercial installations and some installations for packaging sectors.”
“I think that regardless of the manufacturer, stories like this are just good news for the printing industry,” concludes Lewis.
The world’s second largest press manufacturer says a higher demand for sheetfed offset presses in 2012 resulted in a double-digit increase in new orders. The fourth quarter saw a slight operating profit and pre-tax earnings (excluding impairment) in the sheetfed division.
In the fourth quarter of 2012, the sheetfed division posted a special depreciation of just under €30m, a reflection of the management’s strategy to focus on more profitable orders and products. It also mirrors the assessment of changes to market parameters expected in the mid-term and a more results-orientated business strategy for the future.
KBA’s pre-tax profit was slightly higher than the prior-year figure of €3.3m. The group posted a positive net profit for the fourth year in a row.
However in the web and special press division fewer orders were placed than in the above-average prior year, resulting in a 28 per cent reduction in group order intake compared to 2011.
The order backlog of €650m at year’s end was still higher than in the years from 2008 to 2010.
Over 30 per cent of sales come from sectors less affected by the structural shifts in the print media industry as KBA aims to expand its broad product range, with the planned acquisition of an Italian press manufacturer specialising in flexo presses for flexible packaging.
Claus Bolza-Schünemann, CEO, KBA says, “Given the strong increase in operating profit before non-recurring items at group level and the net profit at the Parent, in 2012 our shareholders should receive a dividend again. We will provide more details on this once our official figures are released on 22 March.”
KBA employee numbers fell by over 200 to 6,187 following the extensive adjustments to capacity over the past years.
The KBA management board have introduced a further cost-saving scheme to substantially improve the profitability of the sheetfed and web offset divisions by the end of 2014.
