Orders up 27% - sales and earnings behind target
Koenig & Bauer first-quarter report 2015
- 30% more orders for sheetfed offset and special presses
- Low sales of €177.3m given more deliveries in second-half of 2015
- Pre-tax loss of €17.7m in first quarter
- High net liquidity of €169.2m; Restructuring on track
- Shareholders decide on new company structure on 21 May
- Outlook: Group sales of over €1bn with EBT margin of up to 2%
In the words of president and CEO Claus Bolza-Schünemann, Koenig & Bauer's (KBA) financial figures for the first quarter of 2015 still paint "a differentiated picture". Bucking the industry trend, the press manufacturer's group order intake of €306.7m was 27% up on the previous year and order backlog was around €130m higher than at the beginning of the quarter. In contrast, there is still some catching up to do in terms of sales and earnings. At €177.3m group sales were down 16.9% on the prior-year figure. Given the low sales volume this quarter due to the delivery structure and capacity underutilisation at KBA's German web press sites which have now been rescaled, group earnings before taxes (EBT) of -€17.7m were also lower than the prior-year figure of -€12.1m.
Nevertheless, the company's management has affirmed its forecast for 2015. Bolza-Schünemann: "KBA will generate far more than 50% of group sales in the second-half of the year with corresponding positive effects on earnings. In light of the solid number of new projects I am confident that we will be able to achieve our group sales target for 2015 of over €1bn with a better EBT than in 2014 and an EBT margin of up to 2% of sales in spite of a weaker Q1 and Q2 this year."
New segment reporting...
For the first time this KBA interim report contains the new break down of the business into the segments sheetfed offset presses (Sheetfed Solutions), digital and web offset presses (Digital & Web Solutions) and special presses (Special Solutions). Companies in security printing belonging to KBA-NotaSys as well as the subsidiaries KBA-MetalPrint, KBA-MePrint, KBA-Metronic, KBA-Kammann and KBA-Flexotecnica active in packaging markets are grouped under Special Solutions.
...and new company structure
More transparency, clear management responsibility and enhanced strategic flexibility are the goals of the new company structure proposal which the AGM will decide upon on 21 May in Würzburg. Accordingly, KBA-Sheetfed Solutions in Radebeul and KBA-Digital & Web Solutions in Würzburg are to be spun-off from the parent as autonomously operating business units. Group-wide production (KBA-Industrial Solutions) and security press activities in Würzburg (KBA-NotaSys) are expected to form further legal entities. These spun-off companies are to have a German legal status of an AG & Co. KG (limited partnership) with the parent as a public limited company and sole general partner. Koenig & Bauer AG as a holding with a management board consisting of three members will take over central and strategic tasks. The other members of the management board will become managing directors of the operating companies. Cross-subsidies between the business units will not be tolerated and KBA will invest the capital available to achieve the long-term higher returns on capital necessary. The new company structure is expected to be implemented from 1 January 2015 retrospectively upon approval by the AGM. The internal organisational structure has been in place for one year.
For full results and report please contact
Klaus Schmidt
Group Marketing Director
Telefon / Phone: +49 931 909-4290 / +49 931 909-4835 E-Mail: klaus.schmidt@kba.com
