Order intake rose to €679.3m in the first six months, which enabled the company to return staff at its sheetfed plants to full-time working conditions and confirm its outlook for the year of a sales upswing of 7.5% to more than €1.1bn.
Sales for the six months ending 30 June 2010 were up 4.5% to €473.2m, while pre-tax losses improved from €47.4m to €22m, €21.3m of which was booked in the first quarter. For the second quarter, KBA posted an operating profit of €500,000.
Order backlog midway through the year stood at €541.1m, up from €537.8m a year ago when the company was working through orders for web presses booked before the financial crisis. Cashflow improved from -€41.2m at the end of the first quarter to -€18.1m at the end of June.
Chief executive Helge Hansen said: “We are confident that the substantial improvement in performance compared to the first six months of 2009 will continue for the rest of the year and that we shall post a single-digit rise in sales and a bigger pre-tax profit than the €2.7m in 2009. Precisely how high earnings are will essentially depend on our niche markets, with their shorter business cycles, on our customer services and on a sustained economic revival.”
The local market continued to lead the charge for the company, which said that “brisk demand boosted earnings in Asia and the Pacific from €101.2m to €127.6m and the proportion of Group sales from 22.3% to 27%”
Dave Lewis, KBA Australasia’s general manager of sheetfed, told ProPrint: “Things are still very tough locally especially in the commercial sector, but our strength in the packaging market locally is certainly helping us and we are making good headway in this sector. It is clear, though, that from an investment point of view, the printing industry here is out of step with the relatively strong Australian economy.”
The company has announced two major installations of Rapida 106 presses in Australia in the past few months, one at Percival Print & Packaging in Perth and the other at Brisbane-based Platypus Graphics.
KBA added that it was still looking at other opportunities in the market, despite recently being rebuffed by Manroland after offering to open talks on consolidation plans.
KBA marketing director Klaus Schmidt said: “Without a doubt the market requires a further consolidation. KBA is always open to constructive discussions, and strong denials are part of the game and don’t change the need.”
Read the original article at www.printweek.com.
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