KBA says that it has “almost” balanced its pre-tax profits, with its latest half-year figures showing that orders are up by 2.6 percent and that sales have risen by 3.1 percent to €517.8m. However, the figures also show that demand for web offset presses has not materialised.
Group pre-tax earnings were €-0.1m with a pre-tax profit of €12m in the second quarter canceling out a pre-tax loss of €-12.1m in the first quarter, which at least suggests that the company is turning itself around, largely thanks to its restructuring efforts that have cut costs and seen a concentration on higher margin products. The full group result for the first half of this year was €-3.4m after tax deductions, an improvement over the same period last year (€-10.6m)
Sales of sheetfed offset presses were up 4.3% on last year’s figure to €257.4m and this segment posted an operating profit of €1.5m, an improvement on last year’s €-9.4m). But the operating profit for web and special presses was just €2.3m, below last year’s figure of €4.5m, which KBA attributed to special expenses associated with restructuring.
KBA president and CEO Claus Bolza-Schünemann commented: “The KBA Group will not grow this year, the newly consolidated business fields of flexible packaging and glass direct decoration will compensate at least in part for the loss in revenue of our web offset press business.” However, he noted that KBA would see the benefits of its restructuring from the fourth quarter of this year.