KBA Reports Significant Increase in Operating 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.