KBA 2018 orders increased by 17.2% in the first half of the year
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According to German printing media reported on August 1, KBA Group in the second quarter with a particularly high order income of 454.4 million euros, and an increase in the order stock of 805.8 million euros at the end of the year, aimed at achieving its success in 2018. The development of the securities business and the increase in packaging and printing orders led to an increase in order revenue of 17.2% in the first half of 2018, reaching 705.3 million euros (2017: 6.019 euros).
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In the second quarter of the KBA Group, the revenue of 297.1 million euros, its sales exceeded 514.4 million euros. However, due to the large concentration of delivery time in the second half of the year, it failed to reach the sales of 538.9 million euros in the previous year. Correspondingly, EBIT was below €10.6 million in 2017 (€16.3 million).
In the case of sheetfed presses, the order revenue reached 326.60 million euros, which is equivalent to the sales value promoted by the China Printing Exhibition last year. According to the chairman of the board, Claus Bolza-Schünemann, “large-format cardboard printing has grown significantly.” In the folding carton printing, KBA benefits from the increased investment willingness of international packaging and printing plants. Due to the lower delivery time limit of 283 million euros (2017: 307.8 million euros), sheetfed presses had a profit before interest and taxes of 7.7 million euros lower than the previous year (12.1 million euros).
Despite the increase in order revenue in soft-package printing, orders for digital and web papers were slightly lower than the €85.7 million in the same period last year due to the decline in machine sales for newspaper printing and service orders. In addition to market access costs, particularly in corrugated board and flexible packaging, revenues fell from 60.3 million euros to 55.8 million euros, which significantly dragged the profit before interest and taxes. Chief Financial Officer Mathias Dӓhn said, “The decline in revenue due to weak demand for digital presses has had a major impact. However, we see huge growth in the mid- to short-term growth market for corrugated board and film printing above average. Potential. The necessary and targeted investment to increase this will play an important role."
Order sales in specialty printing increased by 52.8% to €330.6 million (2017: € 216.3 million) due to the growth of a large number of new transactions and logo printing for securities printing. When sales increased from 189.2 million euros to 195 million euros, EBIT was unchanged at 14.4 million euros (previous year) (14.6 million euros). According to Bolza-Schünemann, “Because of the large order from Giesecke + Devrint to supply Egypt with more machines for producing safe banknotes, we have enough tasks in the printing of securities until 2019.”
In 2018, the board of directors of the KBA Group strived to increase organic sales by approximately 4% and increase the profit margin before interest and taxes by approximately 7%.