Agfa and KBA both brace for losses in 2013, as third quarter results come tumbling in.
Agfa reported a net loss of €6 million for Q3, with its industrial inkjet segment performing better than most, coming in just over the break-even line. Overall the graphics and imaging company showed a substantial drop from profits of €2 million for the corresponding period 2012. Total revenue dropped 12.5% to €365 million, largely attributed to a tough investment climate and rationalisation.
- Christian Reinaudo, Agfa-Gevaert president and CEO
Christian Reinaudo, president and CEO of the Agfa-Gevaert Group, said, “Our third quarter top line is distorted by the very strong adverse currency impact. In addition, analogue film revenue was much lower than in the third quarter of last year, when the analogue businesses performed exceptionally strong, recovering from a weak period in 2011.”
He goes on to praise the performance the digital and IT suite, and the inkjet segment’s break-even pushing its year-to-date recurring EBIT into positive. Digital CtP also remained stable. Reinaudo also highlights improvements in operational cash flow and a reduction in net debt.
KBA reported a pre-tax loss of €16.3 million, but a surprise boost in sheetfed performance and a swell in fourth quarter prepayments helped it cling to solid financial profile. The German manufacturing giant attributes its losses to a significantly reduced market volume for web presses.
Axel Kaufman, KBA’s CFO, said, “Along with the total group sales to be generated by the end of the year, the product mix delivered as well as the extraordinary expenses for restructuring measures and impairments will have a significant impact on the annual result in the group. Currently this amount is not yet foreseeable, but will lead to a loss in 2013.”
Despite the overall decline in business, KBA reported its strongest sheetfed offset result in the last year, with new orders in Q3 totalling €164.7 million, supporting the company’s investment in folding carton business and metal-decorating. Sheetfed posted an operating profit of €1.6 million, which KBA attributes to pricing and cost cutting.
Web and special press sales fell by 18.5% to €251.1 million, down from €308.2 million in 2012.
While bracing itself for an overall loss for 2013, KBA is still targeting a positive operating result before tax.