Bolza-Schünemann Resigns from KBA; Company Reports Press Sales Decline
WÜRZBURG—03/26/09—Albrecht Bolza-Schünemann (57), president and CEO of German press manufacturer Koenig & Bauer AG (KBA) since 2003, has resigned with immediate effect from all offices within the group. Bolza-Schünemann announced his decision at the March meeting of the company’s supervisory board, citing the substantial losses incurred by the sheetfed division in Radebeul near Dresden last year (financial results reported below). His brother Claus (53) is now the sole remaining representative of the founding family on the KBA board.
Albrecht Bolza-Schünemann is making way for personnel changes aimed at turning the division around. Preliminary figures for 2008 issued on the same day reveal that a global slump in demand and extensive restructuring measures resulted in an operating loss of over €180m in the sheetfed division, leading to a pre-tax loss for the group of more than €85m. Accepting Mr Bolza-Schünemann’s resignation, KBA chairman Dieter Rampl thanked him on behalf of management and staff for his many services to the company and the print media industry: “In a hostile economic climate such as this, when top managers’ sense of responsibility is a matter of heated public debate, we accept your decision with the greatest respect.”
Helge Hansen appointed successor
Helge Hansen, CFO since February this year, has been appointed Bolza-Schünemann’s successor both as president and as head of human resources in Radebeul. Product development has been taken over by the executive vice-president for production, Dr Frank Junker.
Albrecht Bolza-Schünemann has been on the boards of the parent and various subsidiaries for the past 22 years. Prior to joining the KBA board in Würzburg eleven years ago he was executive vice-president for engineering and development at Albert-Frankenthal in Frankenthal (Palatinate). From 1991 until its merger with the parent in 1998 he was president of east German sheetfed subsidiary KBA-Planeta in Radebeul near Dresden, which was acquired shortly after the fall of the Wall. Strong ties were forged in the years following the collapse of the GDR, when under his guidance Planeta evolved into the biggest engineering firm in east Germany and one of the world’s leading manufacturers of sheetfed presses. In 2000 Albrecht Bolza-Schünemann was appointed deputy president and in 2003 president and CEO of KBA, while retaining his remit as head of human resources and product development in Radebeul.
The collapse of export markets has been impacting heavily on the entire press engineering industry since September 2008, and sheetfed activities have been particularly hard hit. KBA’s new president Helge Hansen has the impartiality and experience necessary to implement the radical restructuring measures required, and also has valuable contacts in financial markets. Prior to his appointment as CFO Hansen was managing director of KBA-Metronic, which he completely reorganised following its acquisition by KBA in 2004.
Koenig & Bauer Group: Preliminary Figures for 2008
Collapse in global demand impacts on balance sheet
• Sales fall 10.1% to €1,531.9m
• Order intakes shrinks 19.7% to €1,241.5m
• Substantial capacity cuts required
• Retrenchment drives up pre-tax loss to over €85m
• Sheetfed division posts heavy loss
• Web and special press division posts sizeable profit
WÜRZBURG—03/26/09—German press manufacturer Koenig & Bauer AG (KBA) has issued preliminary figures for 2008 following the supervisory board’s annual audit meeting. The move is an interim measure prompted by the postponement of the financial statements two weeks ago from 27 March to 30 April in the wake of the global economic crisis, which has impacted on the export-focused press engineering industry with unprecedented and increasing severity, necessitating a renewed realignment of group activities.
The group order intake fell to €1,241.5m, 19.7% down on the corresponding figure for 2007. Below-capacity production levels, particularly at KBA’s sheetfed plants, caused a 10.1% drop in sales to €1,531.9m (2007: €1,703.7m). The volume of orders on hand at the end of the year shrank 36.7% to €501.5m.
An operating profit of more than €100m on web and special presses contrasted with a loss of over €180m in the sheetfed division. Substantial provisions for the proposed restructuring of domestic and foreign sheetfed production plants and for related inventory valuation adjustments, write-downs on bad debts and other remedial measures resulted in a one-off charge in the high double-digit millions, an operating loss of around €80m and a pre-tax loss (EBT) of more than €85m. However, the group did post a modest EBITDA profit of under €10m.
At the end of December there were 7,838 employees on the group payroll, 398 fewer than in 2007 (8,236). Further reductions will be necessary at KBA’s sheetfed production plants, bringing the total down to nearer 7,000 by the end of the current year.
Given the present recessionary tendencies in the global economy and the engineering industry, the world’s third-biggest press manufacturer anticipates a further drop of 20% in sales. However, barring a renewed slump in demand the scheduled restructuring, consolidation and cost-cutting initiatives should enable KBA to post a balanced result for 2009. A more detailed projection will be issued when the 2008 financial statements are disclosed on 30 April.
