Strong Euro gives KBA's Japanese competitors the edge

German press manufacturer pins its hopes on a stong drupa to reverse sheetfed press decline.

In its end-of-year financial results for 2007, the company cited a lull in US sales of sheetfed growth, recording sales worth €856.9m, down from 1.6 per cent in 2006. At €773.5m, the volume of new orders was 10.5 per cent below the previous figure of €864.3m, largely as a result of the subprime crisis in the USA, and soaring euro which have given Japanese competitors a stronger advantage.

Australia is no exception to these trends, according to Klaus Schmidt, director or marketing and corporate communications. "2007 has been a tough year for KBA Australasia, especially price-wise in the sheetfed sector with the strong Euro competing against the much weaker Japanese Yen," he said.

Web business such as the installation of a KBA Comet in Tasmanian newspaper, the Mercury saw a ten per cent increase on 2006; however, the overall order level in 2007 was still below the years 2004 and 2005, which saw large orders from West Australian Newspapers.

Looking to the future, Schmidt anticipates a swing in new directions. "We hope that the Australian economy will gain further momentum in 2008 and demand for high-end medium-and large-format sheetfed presses will pick up, pushed by the new kit at the drupa trade fair."

President and CEO, Albrecht Bolza-Schunemann said that he expects group sales of €1.6 billion for 2008. He believes that drupa will be a good indication as to whether this is achievable or not.

"When drupa closes its doors in June we shall have a clearer idea of developments in key overseas markets, the investment climate in our industry and our prospects for the rest of the year and beyond," he said.