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KBA Reports Increased Profit for 2012

KBA has published its financial statements for 2012 which includes a “significant increase in operating profit.” Sheetfed sales grew 10.2 percent while web and specialty press sales grew by 11.5 percent, stemming from interest generated by drupa. Group sales climbed by 10.9 percent to €1,293.9 million, compared to the prior-year figure of €1,167.2 million.

KBA president and CEO Claus Bolza-Schünemann said: “Our ongoing programme to sustainably improve the profitability of the sheetfed and web offset business should achieve savings in the double-digit million euro range by the end of 2014. Along with the introduction of a product-house organisation and amendments to wage agreements, we started further initiatives to cut general and administrative expenses in core areas, in group-wide purchasing and at the group’s manufacturing facilities. In addition, in the past year we pressed ahead with the realignment of production capacity in place since 2009.”

As a result of cost-cutting measures and the growth of sales, the group reports an operating profit of €43.1 million, a figure that more than quadruples its figure of €9.9 million from 2011. Incoming orders for web and specialty presses fell by 28.1 percent compared to 2011, however.

The company predicts 2013’s figures to have moderate growth, but says web offset and security printing sales will likely continue to decline, an act that will be countered with more cost-cutting in that segment. Instead, the company looks to packaging to grow revenue: “The diverse packaging market is particularly of interest to us, which led us to announce the planned takeover of the Italian press manufacturer, Flexotecnica, at the end of February,” said Bolza-Schünemann. “This company produces presses for the growing market of flexible packaging, such as film. Our focus on improving internal processes and the extension of our product range will cause additional expenses which we invest in the future of the company.”