Report: KBA Increasing Cuts to Offset Sales Drop
WÜRZBURG, GERMANY—Press manufacturer Koenig & Bauer AG (KBA) plans to cut an additional 300 million euros (more than $450 million) in costs by 2013 in an effort to offset flagging sales and right the ship toward profitability, Bloomberg.com reported. In an interview, KBA CEO Helge Hansen said the company is now seeking 580 million euros in savings through 2012. By the middle of next year, 300 more positions will be eliminated at the company.
Hansen told Bloomberg that KBA is ahead of schedule with 2009 cost cutting, garnering savings of 108 million euros running 17 percent above budget. Hansen said that KBA will almost reach the break even point on a pretax basis this year, and he expects modest earnings in 2010.
KBA is also in talks with Chinese companies regarding possible partnerships, and the manufacturer could add a production site of its own in China, Hansen told Bloomberg.