Press maker KBA has confirmed what it feared … that it won’t be able to achieve forecast sales and profit targets.
Despite successes at DRUPA, a slump in sheetfed press sales is expected to put pretax earnings for the year into the red. The company says on current form, sales of web and special presses will exceed targets, but profits from these will not be enough to offset a sheetfed division loss enlarged by provisions for restructuring and other adjustments.
The company says, “particularly in the USA, but also in other countries affected by the present financial crisis and economic downturn, it is still proving difficult for printers to obtain corresponding funding.
“Already perceptibly reduced demand in the print media industry has softened further since summer 2008. This has impacted on all press manufacturers, and at KBA also on the web and special press divisions.”
Following what is says is a double-digit drop in the worldwide market volume for newspaper, commercial and sheetfed presses over the past 18 months, the company has taken advantage of its agreements on flexible working to reduce production in sheetfed plants in Radebeul (Germany), Austria and the Czech Republic. Similar measures were taken for the web press division last September.
KBA says will publish further information with its quarterly report on 14 November.