KBA Reports Significant Increase in Operating Profit

Group pre-tax profit (EBT) climbed from €3.3m in 2011 to €6.1m. KBA posted a net group profit (after tax) of €2.3m and earnings per share of 14 cents.

Solid finances opens up strategic options
Although the execution of major projects and the decline in new orders for web presses resulted in a fall in customer prepayments, cash flow from operating activities remained high at €83.3m (2011: €83.9m). Free cash flow grew from €57.8m to €61.2m causing liquid assets to swell to €206.3m. After scaling back bank loans to €31.6m, KBA’s strong net financial position of +€174.7m plus credit lines approved for the next three years strengthen the group’s solid financial standing. This is also reflected in the group’s equity ratio of 40.2 percent and an above-average equity-to-fixed-assets ratio. The world’s second-largest press manufacturer’s financial and balance sheet ratios positively outperform other companies in the industry. Thus giving KBA the room for strategic options in a fast changing market environment under pressure from online media and regional power shifts in the global economy. KBA continues to live up to its reputation as an engine of innovation with approx. 4.5 percent of sales going to R&D projects in 2012.