PR & News
König & Bauer AG - quarterly profit in a challenging year
Third quarter figures for Koenig & Bauer
About Koenig & Bauer AG :
While demand in the export-intensive press engineering sector has stabilised at a low level since the summer, German manufacturer Koenig & Bauer AG (KBA) sees no sign as yet of a sustained recovery. The Group order intake for the first nine months was €682.3m, 32.1% below the Drupa-enhanced figure of €1,005m for the same period the previous year. However, this was better than the plunge of 49% in the industry as a whole. After picking up strongly in April and remaining buoyant in the summer, orders for sheetfed presses came to €149.4m in the third quarter, up from €145m in the second. The total for the first nine months was €371.7m, 24% below the prior-year figure of €489.3m. The volume of new orders for web and special presses fell from €515.7m to €310.6m, a difference of 39.8%. The only bright spot was security printing.
Group sales were on schedule at €737.3m (2008: €1,075.3m). An increase in sheetfed sales in the third quarter raised the figure to €318.8m at the end of September (2008: €499.9m). Sales of web and special presses fell from €575.4m to €418.5m. A group order backlog of €446.5m on 30 September compared to €721.6m a year earlier. Web and special presses contributed €287.3m (2008: €510.2m), sheetfed €159.2m (2008: €211.4m).
Export level 83.4%: China remains an engine for growth
Rigorous shake-up results in pre-tax profit
Following pre-tax losses of €35.2m in the first quarter and €12.2m in the second, in the third quarter the KBA group posted a pre-tax profit for the first time this year of €9.6m – a favourable contrast to major competitors. For the nine months to October KBA made a pre-tax loss (EBT) of €37.8m (2008: €3.6m profit), and after deducting income taxes disclosed a group loss of €39m (2008: a profit of €7.8m). Earnings per share were also negative (–€2.38 compared to +47 cents in 2008).
Solid finances and good liquidity
Diminishing demand driving market consolidation
Outlook for 2009
Hansen believes the fact that KBA is not beholden to dominant investors unfamiliar with the sector is a big advantage. “The collapse of merger talks between our two biggest German rivals has reinforced our belief that we must draw on our own resources in order to consolidate our traditional core business, press technology. Without neglecting this core activity, KBA will soon be engaging in a new field of operation with good potential for growth, earnings and employment. We believe that expanding our business scope is a wiser course of action than entering a merger in a shrinking market.”
In view of the uncertainty still prevailing with regard to future economic trends, Hansen sees little point in venturing a detailed projection for 2010 until the production schedule and budget have been approved in the new year.
The financial statements can be downloaded as a PDF file from here...
The Analysts' Conference presentation can be downloaded as a PDF file from here...
The Koenig & Bauer Group is one of the largest press manufacturers worldwide and has the broadest press range in the industry. The parent company is Koenig & Bauer AG (KBA) with facilities in Würzburg, Radebeul, Frankenthal and Trennfeld (all in Germany).
The other core members of the Group are Maschinenfabrik KBA-Mödling AG in Mödling, near Vienna (Austria), KBA-Grafitec s.r.o. in Dobruška (Czech Republic), KBA-Metronic AG in Veitshöchheim, near Würzburg (Germany), KBA-MetalPrint GmbH in Stuttgart (also Germany) and KBA-GIORI S.A. in Lausanne (Switzerland). KBA North America Inc. in Dallas, Texas (USA), is our sales and service subsidiary for the US and Canada. In addition we have sales and service outlets in the UK, France, Italy, Switzerland, Denmark, Finland, Sweden, Brazil, Russia, Poland, Australia, China, Malaysia and Singapore, plus a global network of dealers. The core companies in the Group employ some 7,500 people.
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