KBA Reports Jump in Press Orders
WÜRZBURG, GERMAN—March 25, 2011—Printing press manufacturer Koenig & Bauer AG (KBA), which announced in early March that it is expanding its product range to address the high-potential digital print market, has issued its group financial statements for 2010.
Broad product base attracts big influx of new orders
Brisker demand following a revival in the spring drove the group order intake up to €1.285 billion, a 45.4 percent improvement on the crisis-shaken previous year. Orders for sheetfed offset presses jumped 33.8 percent to €621.6 million, while those for web and special presses soared 58.2 percent to €663.3 million. The group order backlog at the end of December was up 31.6 percent at €440.8 million.
Demand for sheetfed and special presses was greater than for web
Group sales climbed 12.3 percent to €1.179 billion (2009: €1.050 biillion) following a substantial two-year decline triggered by the economic slump and structural changes in the market. Sales of sheetfed offset presses came to €551.1 million, 15.1 percent above the prior-year figure. Even though the web and special press division started the year with a much smaller backlog of unfilled orders, and competition from online media impacted on demand for big newspaper presses, it posted a 9.8 percent increase in sales to €628 million.
Demand for multi-unit web presses picked up in the second half of the year, but remained well below pre-crisis levels. Most of the orders booked for newspaper presses, where KBA is the market leader, came from Germany and elsewhere in Europe.
Operating profit more than doubled
In KBA’s core markets—sheetfed, commercial web offset and newspaper printing—persistent excess capacity on the supply side continues to weigh heavily on prices. Nonetheless, a double-digit jump in revenue, and the cost savings delivered by consolidation, enabled KBA to more than double its operating profit from €8.7 million to €22.2 million, with both divisions posting a positive operating result.