Packaging helps drive KBA

In the second quarter of 2015 KBA stated it came ‘significantly closer to achieving its target of positive results in all business segments’, and that in the first six months of the year was able to greatly increase its order intake, which was up 33.2 percent year-on-year to 607.5 million EUR (672.4 million USD). At 597.9 million EUR (661.8 million USD), group order backlog on June 30 was around 43 percent higher than at the beginning of the year. In contrast, sales at the mid-year mark were below the previous year and thus proportionally behind the group’s annual target of over one billion EUR (1.1 billion USD). The disproportionate distribution of sales to the second half-year was previously detailed by the management board.

KBA’s Sheetfed Solutions segment was particularly successful in the first half of 2015 with order intake up 40.3 percent on the previous year to 368.1 million EUR (407.5 million USD). This was predominantly a result of strong demand from the packaging sector, it said. Sales in the sheet-fed segment were up 1.8 percent and are expected to increase more strongly in the second half of this year. Order backlog mid-year came in at 310.6 million EUR (343.9 million USD), the highest figure since 2007.

Along with growing success in the relatively young field of flexible packaging, such as in China where Shanghai Zidan Food Packaging & Printing has ordered an 8-color Evo XD from KBA-Flexotecnica, more orders for metal-decorating, security printing and coding systems boosted the total volume of incoming orders in the Special Solutions segment by 21 percent to 199 million EUR (220.3 million USD). At 169.9 million EUR (188.1 million USD) sales were distinctly lower than the previous year, which benefitted from large security press orders. KBA anticipates a significant rise in revenue in the third and fourth quarters. Order backlog stood at 224.5 million EUR (248.6 million USD) at the mid-year mark, versus 238.5 million EUR (264.1 million USD) in 2014.

New contracts for digital and newspaper presses drove order intake in the Digital & Web Solutions segment up from 45.6 million EUR (50.5 million USD) in 2014 to 69.2 million EUR (76.6 million USD).

KBA president and CEO Claus Bolza-Schünemann said: ‘We are particularly pleased with the major improvements in earnings in sheet-fed, and digital and web.’

KBA’s export level climbed slightly to 84.9 percent after the first six months of the year. At 29.7 percent, the proportion of deliveries to other parts of Europe was significantly down on last year’s figure, 40.4 percent. In contrast, business in North America, which was up from 10 percent to 16.6 percent, was boosted by market success with sheet-fed offset and flexo presses. Those who have recently invested in KBA technology include Walter G. Anderson with its fourth KBA Rapida 145 and Canadian packaging firm Seydaco Packaging with an 8-color KBA-Flexotecnica Evo XD CI flexo press. The proportion attributable to the Asia-Pacific region sales markets also rose, from 24.3 percent to 29.3 percent. Latin America and Africa generated 9.3 percent of group sales, up from 8.7 percent.

KBA has started the second half of 2015 with considerably fuller order books and capacities than in 2014. Completing the raft of existing orders on time poses a substantial challenge, it said. This is especially true of the Sheetfed Solutions business unit which is operating at a very high level of capacity utilization and contributes to around half of group sales. As demand remains strong in this segment special measures have been introduced to increase production output.

Overall, the product mix to be delivered in the second half-year will be more profitable than in the first, KBA said.

Currency conversions made via xe.com/ucc and correct as of August 11, 2015