KBA Reports Jump in Press Orders
Benefiting from firmer sales and the reduced cost base accruing from restructuring measures, the sheetfed division converted a €23.1 million operating loss the previous year into an €8.2 million profit. Provided global economic growth in 2011 is not seriously impaired by current developments, KBA is confident that the higher order backlog at the start of the year and initial brisk demand will enable it to maintain this upward trajectory in sales and profits.
The decline in operating profit generated by web and special presses, from €31.8 million in 2009 to €14 million, reflected more acutely than in the previous year the plunge in demand for web presses: the backlog of orders from better years, which helped sustain figures in 2008 and 2009, was no longer there to cushion the impact of unsatisfactory profit margins in a buyers’ market and the poor level of capacity utilisation at the production plants concerned.
KBA posted a financial loss of €6.9 million (2009: a loss of €6 million), but boosted group pre-tax profit from €2.7 million in 2009 to €15.3 million. Net profit of €12.5 million was also well above the prior-year figure of €6.6 million.
Solid finances create room for innovation
Cash flows from operating activities of €30.1 million were roughly on a par with the previous year (€29.6 million), while the free cash flow surged from €4.9 million in 2009 to €20.4 million. With liquid assets totalling €91 million and bank loans reduced from €48.3 million to €43.1 million, KBA’s net financial position, at €47.9 million, was much stronger than the year before (€27.8 million).
Unlike many other players in this sector KBA has weathered the economic crisis, media transitions and a cost-intensive realignment to a smaller market volume without drawing on external financing or injections of capital. A net profit for the year, foreign currency translations and the issue of employee shares raised equity at the end of last year by €41.5 million to €461.3 million. An above-average equity ratio of 39.6 percent relative to a €100 million higher balance sheet total underscores the solid financial structure of the world’s oldest press manufacturer. The company has access to additional cash credit lines for more than €100m from banks.