Company officials said the petition and appointment of a receiver will allow Appleton Coated to continue operations under the direction of the receiver, who will lead a process aimed at selling the company’s assets to a buyer who will continue operations.
Appleton Coated is a manufacturer and distributor of coated, uncoated, specialty and technical papers sold under Ethos, Utopia and other brand names. The company’s products are used in commercial printing, textbook publishing, label papers, transactional printing and a variety of specialty and custom applications.
In December 2014, Appleton Coated was purchased by Virtus Holdings LLC, a new company formed by members of Appleton Coated’s management team. The company’s manufacturing facility has an annual production capacity of 400,000 tons on three paper machines, and an adjacent coating and finishing complex with processing capacity of 280,000 tons. The company employs around 570 workers.
“Despite the best efforts of our employees and ownership group and the introduction of new products, this step is the best option at this point,” said Doug Osterberg, Appleton Coated’s CEO. “While the company has made significant progress in diversifying its product offerings and entering new markets, the overall business climate is very challenging, and operating under a state court-appointed receiver is the best route to transition the business to sustained profitability.”
Osterberg stated that profitability in the North American graphics paper sector has deteriorated in recent years due to digitization of communications and currency exchange rates that favour imports. These factors produced a decline in domestic demand, excess capacity and aggressive price competition in the company's traditional coated and uncoated paper businesses, he said. Osterberg also noted that these market conditions combined with recent increases in raw material costs, especially market pulp, yielded lower sales volumes and declining profit margins.
Osterberg said the filing will also relieve the company’s burdensome debt and help attract an appropriate buyer. Operating results, he said, are expected to improve in the near term as the company fills unused capacity by moving into both the high-value graphics and commodity segments of containerboard packaging.
Osterberg said the company’s bank has agreed to fund operations during the receivership and that the business will continue to operate during the transition. He added the company will be able to pay salary and wages and fund benefits for current employees.
“The strategic location of Appleton Coated, coupled with the experience, knowledge and work ethic of its employees and the size and capabilities of its paper making machines and equipment, make it a logical candidate to transition to high value segments of the packaging market,” stated Osterberg. “We therefore, expect, but cannot guarantee that a suitable buyer will be identified who will value the company’s strong workforce and be willing to invest in the future.
“This has not been an easy decision for the ownership group that bought Appleton Coated three years ago,” Osterberg continued, “but market changes and world-wide economic conditions have forced our hand, and as difficult as this decision is, it’s the best move at this point.”
Sales were $858 million in the quarter, down $33 million, or four per cent, from the second quarter of 2016. Excluding special items, the company reported a net loss of $3 million compared to net income of $2 million in the second quarter of 2016.
“This quarter's performance was a clear improvement from the first quarter,” said Richard Garneau, president and chief executive officer. “The results of our wood products segment were strong given higher prices associated with the U.S. imposition of trade barriers, while our market pulp segment recorded a solid performance despite production curtailments associated with annual outages.
“In tissue, the improvement in our profitability continued but remained short of expectations,” continued Garneau. “Paper segments continued to be impacted by adverse market conditions, particularly in specialty grades.”
The company recorded an operating loss of $47 million in the 2017 second quarter, compared to an operating loss of $6 million in the first quarter of 2017, while adjusted EBITDA increased by $22 million over the same period, to $83 million.
The company explains its operating results were positively impacted by overall increases in pricing, particularly in its wood products and market pulp segments. Those improvements were partially offset by lower volumes in its market pulp, continued Resolute, and paper segments, as well as higher maintenance expenses related to annual outages at a number of facilities.
The company also incurred $60 million of non-cash impairment charges in the second quarter in connection with the indefinite idling of a paper machine at Catawba (South Carolina), as well as to reflect the write-down of assets at the Coosa Pines (Alabama) facility.
Focusing on market pulp specifically, operating income in this segment was $16 million, $9 million more than the first quarter. Following price increases implemented from the beginning of the year, realized prices in the segment rose by seven per cent, or $39 per metric ton, to $632 per metric ton.
Shipments to third parties fell by 17,000 metric tons compared to the first quarter. Resolute explains this largely resulted from annual outages in Calhoun (Tennessee), Thunder Bay (Ontario) and Coosa Pines, and lower demand for recycled grades during the period. The operating cost per unit rose by $8 per metric ton, reaching $583 per metric ton, resulting mostly from the maintenance outages. EBITDA per unit was $71 per metric ton compared to $42 per metric ton in the previous quarter. Finished goods inventory was substantially flat when compared to the first quarter.
In the tissue segment, Resolute’s overall shipments rose by 1,000 short tons. The wood products segment recorded operating income of $45 million for the quarter, an improvement of $25 million against the previous quarter. The newsprint segment for Resolute incurred an operating loss of $7 million in the quarter, compared to a loss of $4 million in the first quarter. The specialty papers segment recorded an operating loss of $7 million during the second quarter, a decline of $11 million from the previous quarter.
“As our results continue to improve, we remain focused on our short-term priorities of increasing sales in our tissue segment, battling unfair U.S. countervailing and anti-dumping duties and managing our indebtedness and liquidity to be in a position to continue our long-term transformation,” said Garneau. “Now that the uncertainty surrounding trade duties in lumber has started to dissipate, we expect market conditions to remain favourable. In pulp, we are cautiously optimistic that market conditions will remain relatively favourable at least through the third quarter.”
“We are making good progress in transforming Heidelberg into a digital company,” said Rainer Hundsdörfer, CEO of Heidelberg. “We have already had our initial successes in the first quarter, thanks to our new digital presses and two constructive acquisitions.”
During the first quarter of the current financial year, Heidelberg sales were slightly higher than the previous year at €495 million (same quarter of previous year was €486 million) and its net result after taxes improved by more than €20 million to €–16 million. The sales increase, explains the company, was attributable primarily to Western Europe and China.
At €629 million, incoming orders were below those of the same quarter of the previous year (€804 million), which saw a particularly high level of incoming orders from the drupa trade show. The order backlog increased by over 20 percent from €497 million at the end of the financial year to €603 million as at June 30, 2017.
Heidelberg sees itself as being on course to achieve the company targets for 2022 that were announced in June: Company sales ~€3 billion; EBITDA of €250 to €300 million; and net result greater than €100 million.
By taking over software supplier DOCUFY, Heidelberg states it is reinforcing the new digital platforms business area and expanding its Industry 4.0 portfolio. In the segment of consumables, business with coatings and pressroom chemicals has been further expanded in the EMEA region, explains Heidelberg, following the acquisition of this area from Fujifilm.
Profitability, as expressed in EBITDA and EBIT, increased in the quarter under review compared to the previous year’s values. At €14 million, Heidelberg explains EBITDA was far better than in the same quarter of the previous year (€1 million), while EBIT amounted to €–3 million (previous year: €–16 million).
Due to lower financing costs, Heidelberg explains the financial result improved to €–13 million (same quarter of previous year: €–16 million). Including income taxes, the net result after taxes of €–16 million was an improvement over the previous year’s figure (€–37 million). Free cash flow in the first three months was negative at €–13 million (previous year: €6 million).
Print The Future explains its public offering will allow designers, engineers, architects, and other interested parties the opportunity to participate in the increasingly growing 3D printing market. The company states it plans to open 200 brick and mortar stores around the globe. In these stores, both amateur and professional designers will be able to design and print unique objects to fit their spaces.
“We are at the forefront of the 3D printing space and have an ambitious vision for the future of our company as well as the industry. What Starbucks is to coffee, Print The Future will be to 3D printing; synonymous with its product,” said Neil Patel, Founder and CEO of Print The Future, who is based in Vancouver, BC. “The goal is to make 3D printing technology and design as experience-focused and expansive as the coffee chain.”
Print The Future describes itself as the world’s first ubiquitous 3D printing store, where someone can think up an idea on the spot and walk out with it. Print The Future will allow consumers around the world affordable, local access to large-scale 3D printing.
With a further improvement in the net profit after taxes to €36 million (previous year: €28 million) – based on preliminary figures – the company states it has achieved its objective for the year as a whole of a sustained return to profitability. The improvement of nearly €60 million in the free cash flow to €24 million, explains Heidelberg, also underlines the success of the strategic realignment towards a digital company that has been initiated.
“Heidelberg has achieved its targets for 2016/2017 thanks to an excellent final quarter. The net profit after taxes improved once again and we’ve created a solid basis for the company’s further development,” said CEO Rainer Hundsdörfer. “We now need to gear our strategy towards becoming a digital company focused on customer needs. This will also bring the expected growth in sales and a further substantial improvement in profitability in the future.”
At the beginning of February 2017, Heidelberg’s restructuring for the company’s digital future took effect on April 1, 2017 under the motto Heidelberg goes digital!.
This move saw the Heidelberg Digital Technology (HDT) and Heidelberg Digital Business & Services (HDB) segments established. HDT combines sheetfed offset, label printing, and postpress operations and is responsible for developing, producing, and marketing the appropriate technologies and products for new business models. HDB, meanwhile, is where Heidelberg manages its operations relating to services, consumables, remarketed equipment, digital printing technology, and solutions throughout the value-added chain. The third segment – Heidelberg Financial Services (HDF) – will remain the same.
Sales after 12 months were slightly up at €2.524 billion (previous year: €2.512 billion). In the final quarter alone, sales increased by just under 20 percent to €845 million (previous year: €710 million). The more substantial growth in sales originally planned for the year as a whole did not materialize, explains Heidelberg, due to planned acquisitions being postponed until the new reporting year.
In the period under review, Heidelberg states incoming orders of €2.593 billion bucked the industry trend by being significantly up on the previous year’s level (€2.492 billion). Despite the costs for the drupa industry trade show of €10 million in financial year 2016/2017, EBITDA excluding special items in the reporting period amounted to €179 million (previous year: €189 million, including non-recurring income of €19 million from the PSG takeover).
This resulted in an EBITDA margin of 7.1 percent (previous year excluding PSG: 6.8 percent). The €85 million operating profit (EBITDA before special items) for the fourth quarter was over 20 percent higher than in the same period of the previous year.
Special items in the reporting period amounted to some €–18 million (previous year: €–21 million). Lower interest costs resulted in a further improvement in the financial result to €–56 million (previous year: €–65 million). This led to a net result after taxes of €36 million (previous year: €28 million). In the final quarter, the net profit after taxes climbed from €35 million to €46 million.
The free cash flow at the end of the financial year reached a positive value of €24 million (previous year: €–32 million). Operational enhancements and efficient cash flow management thus resulted in an improvement of €56 million compared with the previous year. In the quarter under review, the net financial debt fell to €252 million (March 31, 2016: €281 million) and the leverage remained below the target value of 2 at 1.4.
“We’ve significantly increased the free cash flow and further improved our balance sheet quality in reporting year 2016/2017. This lays a firm foundation for the Group to independently finance our transition into the digital world and step up our pursuit of attractive takeover targets. We’ll be announcing some successes in this regard in the near future,” said Heidelberg CFO Dirk Kaliebe.
The group, led by Chairman Tony Langley, reported a pre-tax profit of €122.7 million on revenue of €900.9 million. Langley earned roughly 45 percent of its profits in Euro currency, 20 percent in US currency, 20 percent in GPB UK currency, and 15 percent in other currencies, although only a quarter of UK earnings were derived from the UK-based businesses, the majority coming from the UK subsidiaries of the European divisions.
Manroland Sheetfed is the group’s largest division in revenue and employee terms and has around 40 subsidiaries around the world. Under Langley’s ownership the company has installed around 500 printing presses, maintained several thousands more and applied for 169 patents. In 2014, the press builder introduced the new Roland 700 Evolution machine.
Piller, the German producer of power security systems, was the largest contributor to the group’s result. IT hosting and Cloud data centres were Piller's main driver in 2016, although healthcare, aircraft ground power and naval military systems also featured. Piller’s successes to date have been without any material levels of business from China, explains Langley Holdings, and in 2016 the company secured a cornerstone project for the Shanghai Stock Exchange. Piller equipment, according to the company, is installed at most of the world’s leading exchanges.
In November the group acquired the business and assets of Texas-based Active Power, a producer of kinetic energy storage devices, and merged the business into its Piller division.
ARO, Langley's French producer of welding technology for the automotive sector, also had another successful year on the back of a still buoyant sector. Langley explains there was generally a dearth of investment in the cement, gypsum, steel and alumina sectors though and Claudius Peters, the group’s German plant machinery producer, although profitable, was much less so on a subdued level of business.
Net income attributable to equity holders of the company for the fourth quarter of 2016 amounted to $28.6 million or 44 cents in earnings per share (EPS), surpassing the 2015 corresponding result of $27.6 million or 43 cents per share by 3.4 percent. As mentioned, the represents the highest earnings performance of any quarter in the Company's 40-year history.
For the year ended December 25, 2016, net income attributable to equity holders of the Company of $104.3 million or $1.61 per share eclipsed the prior year record net income of $99.2 million or $1.53 per share by a respectable 5.1 percent.
Revenue in the fourth quarter of 2016 of $215.6 million also set new heights, according to the company, and exceeded the 2015 final quarter level of $205.7 million by 4.8 percent. Volumes continued where they left off at the end of the first three quarters, explains Winpak, advancing by 6.9 percent in the fourth quarter, when compared to the same period in 2015.
On a percentage basis, biaxially oriented nylon volumes led the way, explains the company, accelerating by over 30 percent followed by packaging machinery and parts sales which rebounded from a slower third quarter of the year. Winpak continued to explain specialty film shipments also recovered from their decline in the previous quarter by moving forward in low double-digit percentage terms as bottlenecks within the operation continued to be addressed. Modified atmosphere packaging volumes ascended in the high single-digit percentage range as ongoing progress was made at securing additional business at major US protein customers.
After a particularly strong third quarter, explains Winpak, rigid container and lidding volumes advanced by low single-digit percentage increases over the 2015 final quarter. Custom container shipments, including specialty beverage, along with condiment packaging and trays for home meal replacements bolstered volume growth. Lidding for yogurt applications provided further gains.
For 2016, revenue reached an all-time high for the company at $822.5 million, up by 3.2 percent from the $797.2 million recorded in the previous year. Volumes grew by a notable 6.8 percent, explains Winpak, with all major product groups progressing.
For the current year, gross profit margins attained a level of 32.7 percent of revenue versus the 32.3 percent reached in 2015. While volumes advanced by 6.8 percent in 2016, gross profit only grew by 4.5 percent from $257.8 million in 2015 to $269.3 million in the present year.
Following a strong finish to 2016, the company explains it remains optimistic as it enters 2017 in terms of volume and earnings advancement. Winpak continues its strategic focus on organic growth with opportunities in the sales pipeline progressing on the road to new revenue for the corporation. In particular, the company is targeting additional business from North America's major food processors.
After nine months, Heidelberg explains its current fiscal sales of €1.7 billion were slightly below the previous year’s levels of €1.8 billion, as it expected, also stating a large number of orders placed at drupa, with longer delivery times, will be supplied on schedule in the fourth quarter.
Over the same period, incoming orders at €1.99 billion were approximately 4.5 percent higher than the previous year’s value (€1.90 billion). At €739 million, the order backlog was around 26 percent up on the previous year’s figure (€586 million). As a result, Heidelberg explains it has a good platform for achieving the significant sales growth planned in the fourth quarter.
“The improvements in results in the third quarter show that Heidelberg is on the right course to achieve sustainable profitability,” said Rainer Hundsdörfer, CEO of Heidelberg. “We anticipate we will further increase our annual profit with a strong final quarter.”
Heidelberg, in releasing its Q3 results, stated it is realigning its organization to accelerate its digital transformation for high-growth customer segments in the years ahead. In future, Heidelberg explains there will be a division that will develop, manufacture and supply appropriate digital technologies and products for new business models. Another division, according to the company, will devise and market these models.
“Heidelberg goes digital. We are getting the company fit for the digital future,” said Hundsdörfer. “To do that, we will develop and roll out our own innovative business ideas. However, we will also be strengthening our position in this area through acquisitions.”
Heidelberg’s current third quarter EBITDA, excluding special items, improved to €49 million in the third quarter (previous year: €40 million). The total figure after nine months was €94 million (previous year: €119 million). At €-2 million, special items in the quarter under review equaled the figure for the same quarter of the previous year (€-2 million). The total figure after nine months was €-8 million (previous year: €-24 million). The financial result for the period under review matched the previous year’s level at €-42 million. Consequently, the net result after taxes in the quarter under review increased substantially to €18 million (previous year: €7 million). At €-10 million for the nine-month period, it was on a par with the corresponding period of the previous year (€-7 million).
Free cash flow in the third quarter was slightly negative at €-10 million, and overall, after nine months, it was also at €-10 million. Compared to the financial year-end on March 31, 2016, the equity of the Heidelberg Group dropped to €246 million as at December 31, 2016. This was primarily due, according to the company, to changes in the actuarial interest rates for pensions.
“We have the financial strength to actively shape our route into the digital world,” said Dirk Kaliebe, CFO. “The balanced financing framework also gives us the freedom to drive forward new business models through targeted acquisitions.”
Thanks to the solid incoming orders and the rise in the order backlog, Heidelberg states it remains focused on its targets for 2016/2017. Although planned acquisitions have not been implemented yet, the company is still striving for marginal sales growth in light of a strong final quarter of the year.
Despite the inputs for the accelerated expansion of the digital and the service business, it also expects to achieve an EBITDA margin before special items on par with the previous year’s level in the 2016/2017 financial year. At the same time, the financial result will improve further on account of declining interest expenses. Thus, Heidelberg is still aiming for a moderate year-on-year increase in its net result after taxes for the year as a whole.
GAAP net income was $20.5 million, up 99 percent compared to $10.3 million for the same period in 2015 or $0.43 per diluted share, up 105 percent compared to $0.21 per diluted share for the same period in 2015. Cash flow from operating activities was $65.2 million, up 141 percent compared to $27.1 million during the same period in 2015
For the year ended December 31, 2016, the company reported revenue of $992.1 million, up 12 percent year-over-year compared to $882.5 million for the same period in 2015. GAAP net income was $45.5 million, up 36 percent compared to $33.5 million for the same period in 2015 or $0.95 per diluted share, up 36 percent compared to $0.70 per diluted share for the same period in 2015.
"EFI delivered another record revenue quarter and our team's execution drove significant improvements in margins, cash flow, and earnings per share, despite the negative impact of foreign currency," said Guy Gecht, CEO of EFI. "As we start the New Year we are even more excited about the road ahead, especially with our upcoming introduction of the Nozomi platform targeted at digital printing for packaging."
"Our balanced business model was again the story in the third quarter,” said Guy Gecht, CEO of EFI. “We are delighted with the strong organic growth in our Industrial Inkjet and Productivity Software segments, coupled with a rebound in cash from operations. We are entering the home stretch of 2016 with a robust pipeline of opportunities to partner with customers around the world in transforming and growing their businesses."
GAAP net income was US$17.7 million for the company’s current third quarter, up 76 percent compared to US$10.3 million for the same period in 2015. Non-GAAP net income was US$27.6 million, up 16 perccent compared to non-GAAP net income of US$24.1 million for the same period in 2015.
For the nine months ended September 30, 2016, EFI reported revenue of US$725.4 million, up 16 percent year-over-year compared to US$626.0 million for the same period in 2015.
Group operating profit for the period was €48.1 million (2015: €37.1 million). The company’s forecasts for the full-year result predicted a six percent improvement on 2015 with pre-tax profits expected to reach €112 million on sales of €930 million.
Tony Langley, Chairman of Langley Holdings, stated the first six months of 2016 had been a very satisfactory trading period for the group with the overall half-year result exceeding expectations. “Both the trading for the first six months and the outlook for the full year, are very positive,” Langley said. “Moreover, the group is financially secure with substantial resources, not only for its existing operations, but also has sufficient surplus to continue its development independently.”
Manroland Sheetfed saw an expected slow-down in orders ahead of drupa, explained the company, but this was brought back on track following drupa with the Offenbach factory “optimally loaded from backlog in the first six months.” Langley said this would remain the case until the year end and that profits in the division were in line with expectations.
German printing consumables business Drück Chemie, acquired in 2014, was trading in line with expectations and was “exceeding the company’s benchmark minimum 20 percent return on capital employed.”
Tony Langley said he expected any Brexit impact on business to be minimal and a slump in demand to be unlikely. “Although some 20 percent of the group’s profits are derived from the UK, the majority of this is from the UK subsidiaries of our German and French divisions, all of which compete entirely with other European producers for UK trade.
“Our actual UK based businesses represent only a nominal percentage of the group as a whole and, therefore, I do not expect Brexit to have a substantial impact on the group one way or the other,” continued Langley, “although UK assets are currently devalued by some 10 percent in euro terms.”
Langley said the business was continuing to look for potential acquisitions and that a number of candidates had been considered during the period but that none were currently being followed up. The group employs around 4,200 people across its five divisions and 80 companies.
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.
“The EFI team delivered a solid quarter despite the disruption caused by global events during the last week of the quarter,” said Guy Gecht, CEO of EFI. “At the same time, EFI’s market position at the drupa tradeshow validated both our strategy and product roadmap, and we’re particularly encouraged by the exceptional reception to our new Nozomi platform.
The drupa momentum is feeding into the strength we are seeing in the Industrial Inkjet and Productivity Software segments,” continued Gecht, “which keep us on track to deliver our stated goal of $1 billion in revenues for the year.”
For the six months ended June 30, 2016, the company reported revenue of $479.8 million, which was also up 21 percent year-over-year compared to $397.3 million for the same period in 2015. GAAP net income was $7.3 million compared to $13.0 million for the same period in 2015.
The company also explains its order intake of €266.3 million was higher than its quarterly revenue of €258.8 million, while “an order backlog of €582.4 million secures utilization well into autumn.”
At €258.8 million, group revenue in the first quarter was up 46% on the prior-year figure of €177.3 million. All three KBA segments posted gains in sales, with new presses for packaging printing climbing to over 70% of the total. The press maker's order backlog at the end of March stood at €582.4 million, an increase on the figure from the start of the year of €574.9 million.
“Numerous optimisation measures are taking effect as planned. This quarter we thus improved earnings by over €18 million to +€2.1 million EBIT or +€0.6 million EBT year-on-year,” said KBA President and CEO Claus Bolza-Schünemann.
The group’s gross profit margin rose from 20.6% to 29.8%. EBIT this quarter came to +€2.1 million. In the first quarter of 2015, there was still a loss of €16.2 million. A slightly negative interest result of –€1.5 million led to a group pre-tax profit this quarter of €0.6 million compared to –€17.7 million the previous year. After deducting income tax expenses, group net profit at March 31 was €1.6 million (2015: –€16.9 million). This corresponds to earnings per share of €0.11 (2015: –€1.01).
KBA states its largest segment, Sheetfed, is still on the right track with a 41% rise in revenue, a quarterly profit of €5.7 million (2015: –€2.7 million) and a high order backlog of €264 million. In the run-up to the industry’s leading trade show, drupa, beginning at the end of May and given longer lead times, KBA explains incoming orders of €135.7 million in this segment were below the unusually high order intake of €174.7 million in the first quarter of 2015 as expected.
The volume of new orders in KBA's Digital & Web segment rose by 23% year-on-year and revenue more than doubled to €27.9 million. KBA explains the segment loss of –€1.8 million improved compared to 12 months ago (2015: –€8.7 million). The KBA management board expects positive earnings for the entire year given the growth in order backlog to €77 million.
At €115.1 million (2015: €117.4 million) the volume of incoming orders in KBA's Special segment was roughly the same as the previous year’s figure (2015: €117.4 million). Revenue grew by some 40% to €88.6 million. At €0.2 million, the quarterly profit was below the prior year (€1.2 million), whereby KBA explains the project execution of a security press order led to delays impacting on profit. KBA states earnings are expected to improve further over the coming quarters as planned given the strong order backlog.
Adobe reported record quarterly revenue of US$1.38 billion, representing year-over-year growth of 25 percent, for its current fiscal first quarter, fueled by the adoption of cloud-based products.
“Every day, more brands, government agencies and educational institutions globally are choosing to base their digital strategies on Adobe’s content and data platforms,” said Shantanu Narayen, Adobe President and CEO. “Our exceptional performance in Q1 is an indicator of the strong momentum we are seeing across our cloud businesses as we drive the experience economy.”
The company’s Digital Media segment revenue grew by 33 percent year-over-year to a record US$932 million, with Creative revenue growing 44 percent year-over-year to a record US$733 million.
Adobe explains Creative Cloud adoption drove its Digital Media Annualized Recurring Revenue (“ARR”) to US$3.13 billion exiting the quarter, an increase of US$246 million. Adobe Marketing Cloud achieved record revenue of US$377 million that represents year-over-year growth of 21 percent.
Year-over-year operating income for the company grew 78 percent and net income grew 200 percent on a GAAP-basis; operating income and net income both grew 48 percent on a non-GAAP basis.
Cash flow from operations was US$498 million and the company repurchased approximately 1.5 million shares during the quarter, returning US$133 million of cash to stockholders.
“We are pleased to report another record quarter with 25 percent year-over-year revenue growth. Strong Cloud adoption drove record Creative and Marketing Cloud revenue in Q1, and better-than-expected Digital Media ARR," said Mark Garrett, Adobe CFO. “Based on our strong Q1 results and business momentum, we are increasing our annual revenue and earnings targets for the year.”
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