KBA Reports Significant Increase in Operating Profit
WÜRZBURG, GERMANY—March 22, 2013—Following preliminary disclosures in early March, press manufacturer Koenig & Bauer AG (KBA) has now published its financial statements for 2012. The group posted a significant increase in operating profit. KBA’s traditional business is in sheetfed and web offset presses but is also successfully active in growing markets, such as packaging, security, digital printing and coding. Earnings before and after tax were higher than in 2011, despite a considerable one-off special depreciation. The management and supervisory boards will propose a dividend of 40 cents per share at the AGM on June 13, 2013 to allow shareholders to participate in the group’s positive result and the parent’s profit.
Drupa boosts sheetfed offset business
Group sales climbed by 10.9 percent to €1,293.9m, compared to the prior-year figure of €1,167.2m. Sheetfed offset sales rose by 10.2 percent to €643.2m triggered by the industry’s leading trade show, Drupa. Despite newspaper, illustration and magazine printers reluctance to invest, in the web and special press division sales increased by 11.5 percent to €650.7m driven by strong business in special presses. However, the intake of new orders came to €1,116.2m, 28.1 percent lower than 2011. While the sheetfed division saw a 17.1 percent increase, orders for web and special presses were only half as high as in the record previous year. At the end of 2012 order backlog came to €648m, still more than in the years 2008 to 2010.
Jump in operating profit
Cost-cutting measures and higher contribution margins from a rise in sales and the growth in service and special press turnover resulted in an operating profit before special items of €43.1m. Despite enormous ongoing pricing pressure affecting the web and sheetfed offset business, this figure is more than four times that of 2011 (€9.9m). KBA’s sheetfed division was affected by a one-off special depreciation on fixed assets of €27.1m. Following this value adjustment, group operating profit stood at €16m. Benefiting from an advantageous product mix, the web and special press division posted a jump in earnings to €54.7m, almost twice the figure for 2011 (€28m). However, the one-time impairment, as well as high trade show and launch costs for new press generations dampened operational earnings in the sheetfed sector. Following a €18.1m loss the previous year, earnings in this division fell to minus €38.7m. Excluding the impairment this segment’s result stood at minus €11.6m.