Total sales fell 31% to €452.8m (£389.8m), with sheetfed sales down 39% to €189.3m, resulting in a pre-tax loss of €47.4m compared to a profit of €2.4m in the first half of 2008.

However, KBA said that there was cause for optimism after the pre-tax loss fell by two-thirds in the second quarter of the year, while the company also experienced a "jump" in orders for sheetfed presses.

President and chief executive Helge Hansen said that, if sales and personnel costs were maintained, the group would improve its performance in the third quarter and make a profit in the fourth.

KBA UK managing director Christian Knapp said that the UK market had performed well in the first half of the year, achieving break-even over the period, but urged caution ahead of what he said would be a "very difficult" second half.

"The UK economy has not yet rebounded and even in Germany, where there was growth in the last quarter, the print sector remains subdued," he said.

Knapp added that he did not expect a significant improvement in the UK economy until the second half of next year, however, he believed that KBA was well-placed to fight its corner during the downturn due to its breadth of products.

Last week, rival Heildeberg announced that it had recorded a €63m operating loss during its first quarter to June 2009.