It’s KBA… but not as you know it. A third quarter report charts the evolution of the world’s second-largest press into packaging and industrial areas.
Group sales are up 8.5 per cent and nine-month figures came in at a pre-tax profit of 1.2 million Euros after nine months compared to a loss of 16.3 million Euros year-on-year.
Although sheetfed presses are strong – up 6.5 per cent to 406.3 million Euros – orders for newspaper and commercial webs were “far below KBA’s low expectations” and the greatest source of optimism surrounds its newer developments.
New Italian subsidiary KBA-Flexotecnica – which makes presses for flexible packaging – generated “pleasing sales” in Germany and the USA, and the company’s inkjet web presses are being shipped out, not to newspaper and commercial printers but for industrial applications. The first KBA super-wide RotaJET – with a web width of more than 1.60 metres – was delivered during the quarter.
But while exports are high, Asia Pacific sales are down at 24.2 per cent as a result of China’s economic slowdown in China.
Reorganisation is paying off, however, and despite the poor capacity utilisation, the web and special press division has turned last year’s 2.9 million Euros loss to a an operating profit of 4.2 million Euros. The report says cash flow is strong, the result of improved earnings and lower trade receivables, although customer prepayments sank and funds flowed out for job cuts.
One source is the continuing reduction in the payroll, down to 5930, including 429 apprentices and trainees, at the end of September and will fall to below 4500 by 2016.
President and chief executive Claus Bolza-Schünemann says a lot is happening to secure long-term profitability, and “despite political conflicts and dampened economic expectations” the management board is standing by its targets for 2014: “From today’s point of view we will achieve group sales of more than a billion Euros and at least balanced group earnings before taxes ,” he says.
“Along with the success already achieved by expanding the service business, the expansion of activities in growth markets, such as digital and special packaging printing, is aimed at contributing to stronger group earnings.”
Right: A RotaJet digital press with a 1600 mm web width will be used for industrial printing
On our homepage: A KBA-Flexotecnica flexible packaging press