KBA sees operating profit triple and sales double

- 30 percent of sales come from sectors less affected by the structural shifts in the print media industry

 

- Operating and free cash flow were also significantly positive

 

Press manufacturer Koenig & Bauer (KBA) said group sales rose by more than 10 percent to nearly €1.3 billion in 2012, with operating profit of over €30 million before special items, more than triple that of 2011.

 

Preliminary figures for 2012 issued by the printing press manufacturer operating and free cash flow were also significantly positive.

 

Along with the ongoing schemes to reduce costs and increase efficiency, KBA said it profited from its versatile product portfolio with over 30 percent of sales come from sectors less affected by the structural shifts in the print media industry.

 

It announced yesterday the acquisition of Flexotecnica, an Italian press manufacturer specialising in flexo presses for flexible packaging.

 

In the fourth quarter of 2012, the sheet-fed division posted a special depreciation of just under €30 million. This is a reflection of the management’s strategy to focus on more profitable orders and products. It also mirrors the assessment of changes to market parameters expected in the mid-term and a more results-orientated business strategy for the future.

 

Higher demand for sheet-fed offset presses in 2012 resulted in a double-digit increase in new orders. The fourth quarter saw a slight operating profit and pre-tax earnings in the sheet-fed division.

 

In contrast, in the more volatile web and special press division, fewer large orders were placed than in the above-average prior year, thus resulting in a 28 percent reduction in group order intake compared to 2011.

 

Nevertheless, order backlog of €650 million at the end of 2012 was still higher than in the years from 2008 to 2010.

 

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