Global downturn savages press maker

US press buyers dump drupa orders sending KBA into revenue tailspin.

The German offset press manufacturer is rocked by the reversal of fortunes following its upbeat announcements at the annual general meeting in June. An anticipated increase in sheetfed press orders taken at drupa has failed to materialise as US printing companies batten down the hatches.

At the start of what promises to be a grim year for press manufacturers as well as printers, the KBA management will cut production capacity in its sheetfed division. In classic management speak it said in a press release … KBA management plans to compensate the foreseeable underutilisation of production capacities in the fourth quarter by making greater short-term use of its scheme of flexible working hours.
That means there will be job losses.

KBA predicts sales will fall to AUD2.6 billion delivering a loss for 2008.