The KBA group posted sales of €1,703.7M, not far off the 2006 record figure of €1,741.9M. But at €1,546.9M, the volume of new orders was 6.2 per cent lower (€1,649.7M) following the economic downturn in the US, weaker demand for big press lines and a slump in demand for gravure presses. The order backlog shrank accordingly to €791.9M, from €948.7M.
But the impact of higher material and labour costs, and provisions for capacity adjustments at web press production plants, was more than offset by systematic cost reductions and improved margins on goods shipped. As a result operating profit jumped from €46.2M in 2006 to €65.7M. Pre-tax earnings soared to €63.2M (2006: €47.4M) and group profit climbed to €49M (€34.3M), though there was a modest financial loss.
The sheet-fed division posted sales worth €856.9M, 1.6 per cent down on the 2006 figure of €870.6M. Once again, medium format presses were the most popular models. At €773.5M, the volume of new orders was 10.5 per cent below the prior figure of €864.3M, largely as a result of the subprime crisis in the US and the high flying euro, which gave Japanese competitors a significant advantage. Net earnings, at €1.6M, were also lower than 12 months earlier (€5M) and well short of management objectives.
President and ceo Albrecht Bolza-Schünemann says: “Provided the global economy remains on a relatively steady footing, we anticipate group sales for 2008 of around €1.6B and group earnings before taxes on a par with 2007. When drupa closes its doors in June we shall have a clearer idea of developments in key overseas markets, the investment climate in our industry and our prospects for the rest of the year and beyond.”
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