KBA Reports Substantial Sheetfed Orders in Q2
Significantly higher quarterly sales
With above-average revenue of €311.5m generated in the second quarter the gap to last year has become considerably smaller. However, after six months group sales of €502.2m were 15 percent lower than twelve months ago (€590.5m). Sales of €255.4m generated by the web and special press division fell over 26 percent short of last year’s figure due to deliveries postponed to the second half of the year. In contrast, sheetfed sales were up 1.6 percent to €246.8m.
Earnings up in sheetfed division
Advances made in various cost-cutting measures have contributed to halving last year’s operating loss of –€18m in the sheetfed division to –€9.4m. From April to June results in this division improved from –€5.9m in the first quarter to –€3.5m. Postponed shipments to the second half of the year, market-related insufficient capacity utilization at our web press facilities and development expenses associated with our new business field digital printing reduced operating profit in our web and special press division from €30.5m in 2012 to €4.5m.
Positive operating cash flow and comfortable net liquidity
Positive cash flows from operating activities of €12.1m were mainly due to higher customer prepayments, even though inventories for upcoming deliveries have swelled. The free cash flow was almost balanced at −€1.1m and funds of €188.9m will continue to be supplemented by ample credit lines. After deducting reduced bank loans of €23m, net liquidity was a comfortable €165.9m. Equity of €426.8m represented 34.8 percent of the balance sheet total.
Future markets gain in importance
Domestic sales were up €38.1m on 2012 to €98.9m and KBA’s export ratio was below average at 80.3 percent accordingly. Economic weakness saw shipments to the rest of Europe fall to €129.8m compared to €168.6m the previous year. At 25.8 percent the proportion of sales generated in this region in the first-half year 2013 stood at only half of the historical average of over 50 percent. In contrast, given the lift in sheetfed sales and some web press deliveries the regional proportion of North America was up to 12.6 percent. At €210.4m the future markets Asia-Pacific, Latin America and Africa contributed 41.9 percent to group sales.