In its 2008 financial statement, German press manufacturer KBA says the global economic downturn had a disproportionately severe impact on the inflow of orders for batch produced sheet-fed presses, which plunged 22.6 per cent to €598.5mn (2007: €773.5mn).
Weak demand resulted in a 16.7 per cent drop in sheet-fed sales to €714.2mn (2007: €856.9mn), and their contribution to group sales consequently fell from 50.3 per cent to 46.6 per cent. With sales of web and special presses relatively steady at €817.7mn (2007: €846.8mn), group sales sank 10.1 per cent to €1,531.9mn (2007: €1,703.7mn). The drop in the volume of orders on hand was much greater, from €791.9mn to just €501.5mn at year’s end.
The impact on profits of a €170mn slide in sales was exacerbated by provisions and write-downs totalling €93.3mn, primarily relating to the approved restructuring and consolidation of sheet-fed facilities. This gave rise to an operating loss of €79.9mn, as opposed to an operating profit of €65.7mn in 2007.
Looking ahead, KBA expects this year’s sales to be some 20 per cent lower than in 2008. Its management is “hopeful that the timely implementation of the restructuring measures, which will mainly focus on sheet-fed activities, will rapidly bring capacities and costs in line with the smaller global market anticipated in the medium term”.
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