The company said sales for the five months to 1 June were short of its targets, after shipments of web presses were delayed by a six-week strike at KBA's Frankenthal plant, which has yet to be fully resolved.

A skeleton agreement on ending the strike was signed on Wednesday (15 June) and a ballot will be held on whether work should resume on Monday (20 June).

Despite missing its targets, KBA recorded a 21% uplift in orders to €600m (£528m) and 27% in sales, to over €420m, backed by growth in its sheetfed and special presses divisions. The manufacturer's order backlog was up 40% at €617m. However, it warned "global demand [for web presses remains] well below pre-crisis levels".

As a result the group intends to reduce staff at its Frankenthal, Würzburg and Trennfeld factories, which employed 6,377 staff at the end of May this year but will reduce by 700 to "well below 6,000" by  the end of 2013.

The company said it would maintain its guidance for the year of a single digit percentage increase in sales on last year's €1.18bn and that, given its pre-tax profit for 2010, it would pay a dividend of €0.30 a share from its net profit of €12.5m - the first for two years.

Chief executive Helge Hansen added that the company would continue to explore more niche markets, citing air purification and industrial coding systems as "business lines with good potential for growth", as well as its relationship with RR Donnelley on inkjet systems.