KBA Releases Positive Figures for the First Half-Year

Notwithstanding the lower volume of orders for web presses, the group order backlog at 30 June came to €814.5m, a third higher than twelve months earlier (€614m). Booked orders for sheetfed presses rose by 25.8 percent and for web and special presses by 36.3 percent.

Profits buck industry trend
Compared to 2011, higher sales and a jump in the gross profit margin to 29 percent transformed a €7.3m operating loss into a €13.6m profit. Even though profitability was influenced by weak demand and continuing pricing pressures in classic newspaper and commercial sectors, operating profit in the web and special press division climbed to €31.7m (2011: €14.1m). Higher contribution margins delivered by brisker sales were a major factor, along with profitable service activities and a larger proportion of special presses. The operating result in the sheetfed division was affected by below-target sales, expenses for drupa and high lead costs for new generations of presses. Notwithstanding the continuous pressure on margins, the savings delivered by cost-cutting initiatives reduced the division’s loss by €3.3m from €21.4m in 2011 to €18.1m. The management board recently expanded its turnaround program for both aspects of its core business to include various ongoing measures to trim costs.