KBA Financially On Target with Nine-Month Figures
The positive effect of Drupa on sales will be more noticeable in the fourth quarter. High development and launch costs for new press generations in all formats, continuing pricing pressures and below-target sales caused the sheetfed division to post a loss of €21.4m.
Higher web and special press sales
At €308.2 million the volume of orders for web and special presses was about 55 percent below last year’s extraordinary high of €683.7 million which was boosted by a number of major orders. Web press orders for newspaper and commercial printing were hit by the growing importance of online media which enforced economy-related reluctance to invest.
By contrast, in this long-term orientated business segment sales rose by 34.1 percent to €520.8 million driven by numerous deliveries resulting from an earlier wave of orders. Higher contribution margins, the growth in the service business and an advantageous product mix resulted in the web and special press division showing an improved profit of €41.9 million (2011: €1.7m).
Export level approaches 90 percent
A slide in domestic sales compared to 2011 raised the export level to 89.5 percent. In the first nine months sales to the rest of Europe contributed to only 29.7 percent of the group total (2011: 36.1 percent) dampened by the weak economy in the South and other parts of Europe. The volume of group sales attributable to the growth regions Asia and the Pacific was 24.4 percent, with China playing a major role.
The figure for the emerging markets Latin America and Africa soared to an above-average 25.3 percent (2011: 11.4 percent). In contrast, sales in North America contributed 10.1 percent to the total, remaining below the long-term average.
Continued solid finances and balance sheet
The increase in sheetfed sales planned in the fourth quarter has led to a temporary rise in working capital. However, the improvement in earnings and drop in trade receivables increased cash flow from operating activities to €66.1 million (2011: €64.6m). The free cash flow climbed from €40.7 million to €49.9m and raised funds to €193.4 million accordingly. This process is supported by active cash management and objectives linked to financial figures.