KBA Sees Successful drupa Boosts Its Business in the Second Half-Year
Administration recommends dispensing with dividend for 2011
Looking back on the 2011 business year, Bolza-Schünemann expressed dissatisfaction with the meagre group profit of €0.4 million on sales approaching €1.2 billion. Nonetheless, KBA was unique among major press manufacturers in posting a pre-tax profit for three years in succession following an industry crisis that necessitated substantial restructuring expenses.
Since going public 27 years ago KBA has paid shareholders a dividend almost every year from the earnings retained by the parent, Koenig & Bauer AG. Last year was an exception in that the parent’s earnings were insufficient and a dividend of 30 cents was based on consolidated profit, which is the determining factor for the group. As a logical consequence of this dividend policy, the management and supervisory boards tabled a motion at the AGM recommending that, in view of the unsatisfactory group performance, no dividend be paid for 2011 even though the parent posted a net profit for the year of €11.3 million as a result of unusually high earnings from shareholdings. The proposal prompted a number of counter-proposals from investors and a heated debate.
Urging shareholders to approve the administration’s proposal for the utilization of retained earnings, Claus Bolza-Schünemann said, “Net profit is key to securing the group’s future and our ability to operate. Paying the dividend demanded in certain counter-proposals would withdraw capital from the parent which could not be created from consolidated earnings last year and would not be available for upcoming moves to restore profitability, develop new business lines such as digital print and exploit further strategic options.”
Detailed figures for the first half-year will be published on August 14, 2012.