Orders of KBA sheetfed presses plunged 22.6 per cent to €598.5m in 2008 compared with €773.5m in 2007, with the company citing the global economic downturn, which it says has had a disproportionately severe impact on the inflow of orders.
The company also reports that the web and special press division, where multi-unit installations with lengthy production times dominate the schedule, exerted a somewhat stabilising influence, with new orders totalling €643m, 16.9 per cent below the prior-year figure of €773.4m.Meanwhile, KBA outlines that group orders shrank 19.7 per cent to €1,241.5m while weak demand resulted in a 16.7 per cent drop in sheetfed sales to €714.2m, and their contribution to group sales consequently fell from 50.3 per cent to 46.6 per cent.
The company continues that sales of web and special presses remained relatively steady at €817.7m compared with €846.8m the year before, however group sales sank 10.1 per cent to €1,531.9m.
A higher service turnover and solid earnings in niche markets, less affected by the recession, pushed up the profit generated by the web and special press division, from a healthy €63.1m in 2007 to €108.5m in 2008. This contrasted with a heavy loss of €188.4m in the sheetfed division due to capacity underutilisation and substantial one-off expenses in preparation for the proposed realignment.
In a 2009 forecast, KBA says in view of weak global demand, unfavourable economic indicators and a drop of more than 36 per cent in the group order backlog, it expects sales to be some 20 per cent lower than in 2008.
A company statement outlines, “Management is hopeful that the timely implementation of the restructuring measures, which will mainly focus on sheetfed activities, will rapidly bring capacities and costs in line with the smaller global market anticipated in the medium term. The group payroll will be reduced to around 7,000 by the end of the year.”
