Press maker KBA has put a figure on its DRUPA sales, and says business after the show continues to be brisk.

But with a good response to its digital and packaging presses, the company says most of the 100 million Euros order book was in batch-produced sheetfed presses. It had previously declined to reveal its sales at the Düsseldorf show until finance was arranged.

At the annual meeting in Würzburg, president and chief executive Claus Bolza-Schünemann reported contracts worth “well over one hundred million Euros” and said post-Drupa business was also brisk.

He says that while the show’s positive impact on order intake and sales will not work through to the bottom line “for some weeks or even months”, preliminary figures for KBA’s sheetfed division show that the volume of new orders booked to the end of May approached 300 million Euros, roughly 12 per cent up on 2011.

However, orders for web and special presses totalled approximately 190 million Euros, a big drop on the prior-year figure of more than 335 million Euros, which had been boosted by some major contracts. The group order intake of just over 486 million Euros for the first five months was thus lower than 12 months earlier but higher than group sales for the same period, which stood at around 458 million Euros or around eight per cent up on the prior-year figure. The order backlog at 31 May exceeded 854 million Euros and was a good 236 million Euros above the prior-year figure. This will contribute to the higher sales targeted in the second six months.

Bolza-Schünemann would not disclose earnings figures before the half-year report on August 14, but said they would be higher than 2011.

Despite the state of the global economy, sales of more than 1.2 billion Euros are targetted for 2012, with higher pre-tax group profits. The projection is based on an anticipated high level of plant utilisation in the second half-year and a positive impact on earnings from ongoing cost-cutting activities.

At the end of May, KBA’s group payroll was down 121 on last year to 6256, and excluding 328 apprentices has already fallen below 6000. Numbers will be reduced by “several hundred more” over the next few years as measures including phased retirement reach completion.

Bolza-Schünemann says changes in the media environment, technological advances and structural transitions in the print media industry offer opportunities for KBA: “We are aiming to close the gap to the number one player in sheetfed offset and move up to the number two slot in commercial web offset.

“As the market leader for newspaper presses we are adjusting our product palette to a smaller market volume while boosting profitability.”

The recommendation of management and supervisory boards that the company does not pay a dividend for 2011 resulted in heated discussion. Bolza-Schünemann was dissatisfied with the “meagre” group profit of 400,000 Euros on sales approaching 1.2 billion Euros, although it has paid a dividend almost every year since going public 27 years ago. Last year had been an exception in that the parent’s earnings were insufficient and a dividend of 30 cents was based on consolidated profit, which is the determining factor for the group.

“Net profit is key to securing the group’s future and our ability to operate,” he said. Paying the dividend would withdraw capital which would not be available for upcoming moves to restore profitability, develop new business lines such as digital print and exploit further strategic options.