Sheetfed press orders come off the boil for KBA

The lower order level was across security presses and webfed gravure as well as sheetfed. However the company maintain it has sufficient orders in hand to maintain production for the rest of the year. Only a substantial boost in earnings from web and special presses in the second quarter transformed an operating loss of €6.5m from the first quarter into an €18.8m profit (2005: €0.4m loss), even though sheetfed earnings were well below target.

The company’s strategy of creating custom-made innovative presses is failing to make an impact according to KBA president and CEO Albrecht Bolza-Schünemann, who said “efforts to secure an innovation premium commensurate with the competitive benefits delivered over more conventional sheetfed technology are frustrated by market pressures.”

Exports of presses to China continue to bolster European manufacturers’ bottom line. Following a stream of shipments to China, KBA sales to Asia and the Pacific soared from €97.4m (AUD$163m) in 2005 to €162.2m ($271.4m), or 22.3% (14.1%) of the group total.