The press manufacturer’s dip into the red came off the back of a 10.1% drop in sales, from €1.7bn to €1.5bn, and a 19.7% decline in order intake, from €1.5bn to €1.2bn.

KBA’s sheetfed division was hardest hit, dropping 16% from €857m to €714m, while web suffered less slipping from €847 to €818 – a drop of 3%.

The company’s €170m slide in sales was exacerbated by provisions and write-downs totalling €93.3m, which led to an operating loss of €79.9m, down from a profit of €65.7m in 2007.

The company has said that it expects global sales in 2009 to be 20% lower than in 2008.

However, it added: “The timely implementation of the restructuring measures, which will mainly focus on sheetfed activities, will rapidly bring capacities and costs in line with the smaller global market anticipated in the medium term.

“The group payroll will be reduced to around 7000 by the end of the year. Since provision was made in last year’s accounts for the necessary personnel cuts, write-downs and other remedial action, KBA is targeting a balanced pre-tax result (EBT) for 2009, provided global demand does not deteriorate any further.”

Read the original article at www.printweek.com.

Comment below to have your say on this story.

If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.  

Sign up to the Sprinter newsletter