Koenig & Bauer AG Financial Statements For 2011

Rising costs and investment impact on operating result
The rising cost of raw materials, heavy investment in new products, wage increases, unscheduled structural expenses and lower sales following external delays in deliveries until the current year reduced the group operating profit from €22.2m in 2010 to €9.9m. But despite unsatisfactory market pricing and fluctuating levels of plant utilisation, KBA’s web and special press division posted a profit of €28m (2010: €14m), with niche and service activities playing a major role. In the sheetfed division, price erosion and the high up-front expense associated with developing new products put paid to any operating profit, even though restructuring measures delivered substantial cost savings. The division therefore made an operating loss of €18.1m following a profit of €8.2m the year before.