However he company also reports that following a weak intake of orders from November 2009 to February 2010 and reduced web-press shipments in the first three months, group sales of €209.8m were 4.7 per cent down on the previous year’s €220.2m. While the sheetfed division posted an 11.7 per cent increase in sales to €85.8m, sales generated by the web and special press division slid 13.5 per cent to €124m.
Weak quarterly sales impacted on profit contributions and earnings. Although the gross profit margin climbed from 13.6 per cent twelve months earlier to 21.7 per cent as a result of cost-cutting measures, KBA posted an operating loss for the quarter of €19.4m.
This, however, was well below the prior-year figure of €32.7m. Following a small financial loss of €1.9m the group made a pre-tax loss (EBT) of €21.3m, compared to a loss of €35.2m the previous year. After taxes it disclosed a net loss of €20.2m compare to €33.2m loss in 2009. Earnings per share also improved to –€1.23 (2009: –€2.03).
KBA continues that brisk demand in China boosted sales to Asia and the Pacific from €36.8m to €58.1m, causing a leap from 16.7 per cent to 27.7 per cent in the proportion of group sales generated in this region. North America, a relatively weak market, contributed 15 per cent of group sales, Africa and Latin America 15.9 per cent.
Commenting on the forecast for the rest of the year, Helge Hansen, CEO of KBA says, “By the end of the year we anticipate higher group sales and a better pre-tax result than in 2009. In view of the strong increase in our order backlog in the first quarter, and the volume of orders expected in the second quarter, we have a real chance of achieving these objectives.”
He continues, “However, at this early stage, and in view of current economic instability, we see little sense in issuing a sales and earnings forecast for the year. We shall keep you informed of progress to date in our regular financial reports.”
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