Ad Hoc 2010
KBA appoints new CFO with effect from 1 October 2010
On 1 October 2010, Helge Hansen (63), president and CEO of German press manufacturer Koenig & Bauer AG (KBA), will hand the financial remit he has held since March 2009 to a new, externally recruited executive board member. This personnel decision of the supervisory board serves to relieve the CEO of numerous operative tasks, not least since Helge Hansen also carries responsibility for human resources and production at the Radebeul sheetfed division, in addition to his duties as president and CEO and the strategic realignment of the company group. Helge Hansen, who has served KBA as president and CEO for sixteen months, will thus gain more time for his remaining executive board responsibilities, and for increased concentration on the strategic realignment of the company which was begun under his management last year and is to include also the announced expansion into new business fields.
As head of finance and control with an international company group, the newly appointed CFO possesses extensive experience in corporate finance and control. The appointment of a separate executive vice-president for finances is the response of the SDAX-listed company Koenig & Bauer AG to the mounting challenges posed by risk and finance management, compliance and customer financing in the light of statutory requirements and the volatile market situation.
KBA group: balanced result despite continuing weak demand
Koenig & Bauer AG (KBA) publishes preliminary figures for 2009.
Market conditions for export-oriented German press manufacturers show little sign of easing. Hit by the economic recession and a slump in advertising, global demand in 2009 was over 40% below the level for 2007. Even KBA, one of the world’s leading suppliers of printing equipment, was badly affected by a widespread moratorium on new investment in the print media industry. Although incoming orders of web and special presses picked up slightly in the fourth quarter of 2009, group orders for the year came to just under EUR890m, a drop of 29% on the 2008 figure of EUR1,241.5m. With demand for web presses even weaker than expected, Group sales came to EUR1.06bn, 31% below the prior-year figure of EUR1.53bn.
Despite the decline in sales KBA succeeded in moving from a pre-tax loss of EUR87.1m in 2008 to a balanced result in 2009, and even anticipates a modest post-tax profit for the year. Following quarterly losses in the first six months, in the third quarter there were signs that the group’s successful turnaround was working through to the bottom line, boosted by savings of more than EUR100m in personnel and material costs. All the obligations anticipated for outstanding restructuring measures were included in the 2009 balance sheet and adequate provision made for other risks.
In 2009 the KBA group payroll was trimmed from around 8,000 to fewer than 7,000, largely due to capacity cuts in the sheetfed division, and this year it will be reduced even further, to approximately 6,300. Downsizing in line with market prospects has helped deliver permanent gains in terms of cost savings and breakeven thresholds.
The cost-intensive restructuring process was funded by KBA with no state aid or new debt. The group’s equity ratio of 34%-plus is well above the industry average, its net financial position remains positive. It has not had to draw on pre-arranged credit lines.
KBA will issue its final figures for 2009 on 26 March along with a preliminary outlook for 2010.