Competition in web arena hits orders at KBA

News by

30 May 2002

KBA has been affected by "aggressive price competition" in the web sector during the first quarter of 2002, but its revenues and pre-tax profits still increased.

The German press manufacturers sales rose 14% to 190.8m (299.7m) in the three months to 31 March, while pre-tax profits were up 112% to 2.36m.

Revenues from the groups sheetfed division increased 23% to 105.5m, while those from the web division rose 5% to 85.5m.
However, orders were hit by a cautious market with fewer prepared to commit funds to new equipment. KBAs order intake fell 36% to 159.2m, with order levels down 21% to 670.6m. But the group said orders would keep its web press division busy for the rest of the year.

KBA president Reinhart Siewert said he was confident that the groups earnings would stabilise towards the end of the year.

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