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KBA FInancials Include Jump in Order Backlog

March 30, 2012
WÜRZBURG, GERMANY—March 30, 2012—Following preliminary disclosures in early March, German press manufacturer Koenig & Bauer AG (KBA) has now published its financial statements for 2011. Notwithstanding the challenges arising from ongoing structural changes in the print media market, the KBA group met all its capital requirements from a healthy operating cash flow of €83.9 million, scaled back bank debts still further and boosted liquid assets.

The 195-year old enterprise bucked the industry trend and was unique among major global press manufacturers in disclosing a post-recession profit for the third year in succession.

Highlights:
  • Order intake 20.8 percent higher than in 2010
  • Order backlog up 87.3 percent
  • Sales around prior-year level following delivery delays
  • EBIT €9.9 million, pre-tax profit €3.3 million
  • Operating cash flow €83.9 million
  • Unsettled market environment puts paid to dividend

Thriving business in special presses
Brisk demand for security, metal-decorating and coding equipment helped swell the group order intake to €1.552 billion—its highest level since the record year of 2006 and 20.8 percent up on 2010 (€1.285 billion). The backlog of unfilled orders almost doubled from €440.8 million to €825.7 million.

But at €1.167.2 billion, group sales were marginally below the prior-year figure of €1.179 billion due to shipping delays and weak demand for sheetfed and web offset presses in the second half-year.

Patchy performance
Flagging investment activities in the final four months led to an 8.3 percent drop in new sheetfed contracts to €569.9 million. Brisk demand for niche products, however, sent the intake of new orders for web and special presses soaring by 48.1 percent to €982.2 million. Although the two divisions each posted sales worth €583.6 million, this represented an improvement of 5.9 percent over the prior year in sheetfed sales, but a slide of 7.1 percent in sales of web and special presses following shipping delays.

Rising costs and investment impact on operating result
The rising cost of raw materials, heavy investment in new products, wage increases, unscheduled structural expenses and lower sales following external delays in deliveries until the current year reduced the group operating profit from €22.2 million in 2010 to €9.9 million. But despite unsatisfactory market pricing and fluctuating levels of plant utilization, KBA’s web and special press division posted a profit of €28 million (2010: €14 million), with niche and service activities playing a major role.
 

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