KBA has recorded its highest profit margin in almost 200 years, but the result has been driven by new markets in pakaging and digital print.

While all of the German press maker's business segments operated profitably, sales from the Asia Pacific region were impacted by a softer Chinese economy.

Figures do not separate web-offset and newspaper presses from those of the company's inkjet digital presses, recording a 28 per cent increase In order intake and 59 per cent increase in revenue from the combined "digital and web" division. Total revenue increased 14 per cent to 1,167 million Euros.

"The profitable growth was generated in existing and new packaging markets, from industrial applications in digital web printing and the continued expansion of service business, despite the absence of any macroeconomic support," said chief executive Claus Bolza-Schünemann.

Shareholders will share in the success with a 50 cents per share dividend to be proposed at the May 23 annual meeting.

Orders totalled 1,149.7 million Euros, just short of last year's 1,182.7 million Euros, with the order backlog at 557.5 million Euros.

The increased revenue, improved margins, consistently high capacity utilisation and sustained reduction in costs led to the highest profits in KBA's 199-year history. Adjusted for non-recurring income, EBIT and EBT climbed to 62.9 million Euros and 56.8 million Euros respectively. Besides operating factors, earnings were driven by non-recurring income from write-ups of property, plant and equipment and the recognition of deferred tax assets.

Growth in the packaging market and substantial market share gains drove a 9.5 per cent increase in sheetfed revenue to 615 million Euros. Growth in service business and in new digital printing applications enabled the Digital & Web division to become profitable with EBIT of 1.9 million Euros "despite the strain caused by development expenses". With order intake up 28 per cent to 150.8 million Euros, revenue rose 59 per cent to 156.5 million Euros.

Bolza-Schünemann says the partnership with HP in the corrugated packaging sector and its own RotaJET series are expected to make a "growing contribution" to its digital printing business.

The group workforce has grown by 69 to 5318 employees, including 60 who joined the group with the acquisition of Iberica.

"Despite the persistently challenging conditions in the global economy particularly in the light of recent political developments, we are facing 2017, the year of our company's 200th anniversary, with confidence," says Bolza-Schünemann. "Should conditions for our global business not significantly deteriorate, we target an organic growth of up to 1.25 billion Euros in group revenue and an EBIT margin of around six per cent in 2017."

The board now wants to increase group revenue organically by around four per cent per year until 2021, more than half of which is to be generated in packaging printing. Further targets include a dividend ratio of 15-35 per cent of group net profit, an equity ratio of more than 45 per cent and a working capital target corridor of 20-25 per cent of revenue.

Pictured: The RotaJET L inkjet web introduced at DRUPA and currently being enhanced for industrial and packaging printing applications