Koenig & Bauer on Track to Meet Targets for 2018

May 4, 2018

Caption: The higher orders for large-format presses contributed to the 5.3% increase in order intake in the Sheetfed segment. (Source: Koenig & Bauer)
 
 
After fully achieving and even exceeding its guidance last year due to strong revenue and earnings performance in the fourth quarter, the Koenig & Bauer group remains on track to meet its targets for 2018, underpinned by a high order backlog and a well filled project pipeline.
 
At €250.9 million, group order intake in the first three months of 2018 was down on the previous year’s figure of €321.5 million m, which had been influenced by a major security project.
 
“Alongside our expansionary service business, we made further progress in the flourishing packaging printing,” CEO Claus Bolza-Schünemann reported. “With our customer-centric solutions, we were able to increase order intake in cardboard and film printing, metal decorating, marking and coding printing. As expected, demand for digital printing presses was subdued.”
 
Group revenue (€217.3 million) and EBIT (–€1.9 million) were down on the previous year (€259.1 million and €5 million, respectively) in Q1.
 
“Due to the delivery dates requested by our customers, press installations in 2018 will be concentrating on the second half of the year and particularly Q4 to an even greater extent than last year,” said CFO Mathias Dähn.
 
Cash flows from operating activities rose substantially over the previous year (–€14.9 million) to €20.3 million. The free cash flow was burdened by the final payment instalment of €34.8 million for the external funding of a part of the pension provisions.
 
Looking ahead over the next few quarters, the management board expects a positive order development due to the ongoing expansion of the service business, growing demand in the packaging markets and expected new orders in security printing alongside the high order backlog.
 
“The significantly increasing revenue momentum in the second half of the year together with further progress made by the cost-cutting projects in security printing, purchasing and production will lead to a clear improvement in group earnings,” reported Dähn. “In the absence of any material deterioration in global economic and political conditions for our international business, we expect to achieve organic growth of around 4% in group revenue and an EBIT margin of around 7% in 2018. This will put us on track to achieving our EBIT margin target of 9% and an organic revenue growth rate of around 4% p.a. by 2021.”

The higher orders for large-format presses contributed to the 5.3% increase in order intake in the Sheetfed segment. (Source: Koenig & Bauer)