With realignment costs creating KBA’s first loss since 2008, shareholders have agreed to forego a dividend.

At the annual meeting in Wurzburg, president and chief executive Claus Bolza-Schünemann said sustainable restructuring of the group was a must: “We are convinced that we will be able to harvest the fruits of our realignment in 2015 and that the group will return to sustainable profitability by 2016 at the latest.”  

Under lasting capacity and structural measures, between 1100-1500 jobs are being cut from the group’s current 6200.

But Bolza-Schünemann says that despite the Fit@All programme, “we do not want to go overboard with cost savings or shrink beyond recognition”. Expansion of potential growth areas is “a further pillar” of the realignment.”  

Special costs of 155.2 million Euros associated with the programme “may seem very high”, but cover all foreseeable risks and expenses. Without them, a group pre-tax profit of 17.1 million Euros would have been generated.

“This is the first time since 2008 that we have posted a loss and therefore we are unable to submit a dividend proposal,” he said.