Koenig & Bauer Group (KBA) released its second quarter results for 2016 noting it will raise revenue and earnings targets for the full fiscal year. The positive financial expectations, according to the German press maker, are backed by what it describes as a successful drupa (May 31 to June 10, 2016) and a high order intake of €352.5m in its second quarter.
At €352.5 million, group order intake from April to June was up 17.2 percent year-on-year, although the group's figures for this quarter only contain around a third of orders placed at the drupa trade show which were in the triple-digit million euro range. The catch-up effect, explains KBA, will ensure additional stimulus in the second half-year as KBA traditionally only books orders that are fully documented and financially secure.
KBA reported half-year revenue of €553.9 million which is 30 percent above the prior year’s period. After six months, group order intake of €618.8 million was 1.9% percent higher than the prior year, which KBA also describes as strong. Revenue increased over the same period by 29.7 percent to €553 million.
KBA’s complete order backlog of €639.8 million secures workload beyond 2016. “This is a solid buffer for the second half-year and gives us ample security to raise our targets for 2016 despite existing economic and political turbulence,” said Claus Bolza-Schünemann, KBA President and CEO. “ We now expect an EBT margin of around four percent with group revenue between €1.1 and €1.2 billion."
KBA explains a rise of 30 percent in revenue compared to 2015, strong capacity utilization at KBA's facilities and cost savings from its restructuring program completed at the start of the year had a positive impact on earnings after six months despite high trade show and development costs. The company’s EBIT improved to €20.7 million compared to the prior-year loss of –€8.3 million A slightly negative interest result of –€2.9 million led to a group pre-tax profit (EBT) of €17.8 million. After deducting income tax expenses, group net profit came to €17.2 million (2015: –€9.3 million).
The company’s free cash flow stands at –€14.4 million, compared to –€25.2 million 12 months ago. Funds at the end of June 2016 came to €168.7 million. Less bank loans, KBA's net liquidity stood at €154.5 million.
KBA explains from the drupa trade show, which again brought in orders in the triple-digit million euro range for KBA's largest segment, sheetfed, around a third of these orders were already visible in the group's figures for the second quarter and the other two thirds will be booked in the coming months.
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