Koenig & Bauer has seemingly bucked trends afflicting rival press manufacturers by reporting a 21.4% increase in orders for the first quarter of this year.
In a presentation to analysts the company draws attention to insolvency and profit warnings from rival suppliers while it reports the best order intake for Q1 for two years.
However, Koenig & Bauer was bolstered by the success of its Special and New Technologies division, where orders for its Rotajet and the HP PageWide inkjet presses it builds mark an “outstanding recovery”. It has also gained from business for its banknote operation from North America and changes in the metal decorating area where the trend is for ‘premierisation’ of tin packaging and widespread adoption of aluminium. This is driving a replacement market for presses.
New orders in this segment rose 40.6% to €114.7 million and revenue grew 24.1% to €134.0 million.
In contrast the paper and packaging division, covering its sheetfed presses, is under pressure from competitors and a decline in the overall market. It has had success in what it defines as the medium format market (B1 presses) and very large format machines. Demand is coming from North America for specialist machines and compensating for falls in Europe where high interest rates and uncertainty are taking a toll.
Orders for sheetfed presses are up 12.4% compared to a poor first quarter last year to €194.3 million. But revenue dropped to €133.4 million. The Ebitda for the division fell from a positive €4.6 million to a negative €8.4 million this year. This is a mirror of the switch in the special and technology division where a negative €8.1 million became a positive €4.1 million.
The company has reported success at a trade fair in Brazil with a number of Rapida presses order by printers in this and neighbouring countries. It also reports strong attendance at events to launch a new CI flexo press and to show progress with the Koenig & Bauer Durst Varijet 106.
Group revenue for the quarter increased to €260.2 million (€252.2 million) with order intake up to €297.6 million (€245.2 million). The operating Ebitda is reported at €-2.9 million thanks to the inclusion of a €6.6 million extraordinary cost for the closure of the Albert-Frankenthal factory at the end of this month.
CEO Stephen Kimmich says: “The strong start to the year in order intake is a massive vote of confidence from our customers and proves the pronounced resilience of Koenig & Bauer. As already emphasised with our annual figures: in times of global trade policy uncertainty, stability is not a static state, but requires a high degree of organisational responsiveness. Our significant growth in order intake against the industry trend shows that we are doing our homework.”
