KBA reports increase in sheetfed press orders

KBA has seen what it described as a substantial lift in sheetfed press orders as pre-tax earnings have been well up during the second quarter of this year.

Business developed at trade fairs in the Middle East and Asia largely balanced a shortfall in the first quarter, added KBA.

However, demand for big newspaper and commercial web presses remains unsatisfactory.

'Following last year's substantial loss we have a real chance of achieving our ambitious goal of posting a balanced result,' said Helge Hansen, KBA's president and chief executive officer.

In the first five months of the year, the KBA group posted a 20.7 per cent decline in new orders (the first quarter showed a 40.7 per cent decline).

However, the revival in sheetfed business swelled the order backlog at the end of May to EUR557.1m (GBP473m).

Group sales, at EUR347.5m, were 34.7 per cent down on the corresponding figure for the previous year and 10.7 per cent below target.

Meeting the group target for 2009 of around EUR1.2bn will depend largely on market trends in coming months.

KBA said it will continue to expand its service activities, and is also aiming to expand its consumables business.

The KBA management board does not see the global market volume for press technology returning to the high levels of 2005 or 2006 for the foreseeable future.

Growth is being limited by changes in media consumption habits, continuing consolidation in the print sector, a rapid increase in press productivity and the emergence of low-budget rivals in threshold economies, such as China and India.

Hansen explained that at the moment, KBA has no net bank debts and in recent months the company has improved its net financial position to EUR36m and its operative cash flow is positive.

'To achieve the growth we undoubtedly require in the medium term, we must look to high-potential sectors such as packaging and green energy technology, and here we have already developed specific concepts,' he said.

'Alongside a more customary merger or acquisition we are considering taking a stake in a promising new start-up or entering an alliance with an established player as a means of gaining access to these markets,' he added.

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