Koenig & Bauer dipped into the red for the third quarter as what the company calls “cyclically induced investment restraint” and a delay in orders for its currency and security presses combined to depress orders.
However, the company remains confident that it will achieve a target of €1.3 billion in sales for the year with Ebit at €25-35 million. At the nine-month point inkling orders are down 19% at €831.3 million, slightly below the average decline of 16% for all German press manufacturers.
The sheetfed press sector suffered most with a drop off in new orders amounting to 30% at this point. The company says the fall was made worse by the peak in orders last year, the result of post Covid catch up activity. However, thanks to reduced costs, the company expects growth to be more profitable in 2023 than in 2022.
If sheetfed and special presses are down in terms of orders received, the digital and web division noted an increase in business thanks to orders for Rotajet and for large corrugated presses from HP, for whom Koenig & Bauer builds the 1100 series presses.
The division is also continuing to incur start up costs associated with new machines launched for flexo, corrugated and digital printing.
Koenig & Bauer CEO Andreas Pleßke says: “We reaffirm our medium-term guidance, as there is clear evidence that our focus on the packaging market, which is growing sustainably for structural factors, is paying off gradually.”
However, the company is taking action to manage costs implementing flexible working arrangements and intensifying other cost saving measures.
