There’s no shortage of headlines about storied print publications scaling back or shutting down entirely. Ad Age, for one, called it a category in “secular decline” in its 2019 Publishers A-List. From a media perspective, print publishers have a unique opportunity to reinvigorate their brands. If we treated these publishers the way we do clients, I’d tell them that they have storied legacies and enormous amounts of brand equity—what they need now is to evolve their offerings in a way that puts print in the center of a more disruptive offering.
•Order gains in service and packaging and security printing
•Well filled project pipeline in all business fields
•6.2% growth in revenue
•Full capacity utilisation thanks to high order backlog
•Q1 earnings close to last year’s level despite growth expenses
•Equity ratio of 37.5%
•Guidance for 2019: revenue growth of around 4% and an EBIT margin of around 6% in the group
2019 started well for the Koenig & Bauer group, posting a double-digit increase in order intake in the first quarter year-over year to €276.4m. This strong growth, which exceeded the industry average, was underpinned by significantly more orders for services and for folding carton, direct glass and security printing presses. At €230.7m, revenue exceeded the previous year’s figure by 6.2%. EBIT was still slightly in negative territory due to the low revenue level, coming to –€2.8m despite high market-entry and growth-related expenses, and was thus not far off the previous year’s figure of –€1.9m. At –€4.9m, group net earnings in the first quarter of 2019 translate into earnings per share of –€0.30.
In addition to good service orders, the substantially higher orders for packaging printing presses caused order intake in the Sheetfed segment to rise by 12.4% to €173.5m. Revenue increased slightly by 1.8% to €113m. The good order backlog of €250.5m ensures continued high capacity utilisation. At –€3.1m, EBIT was below the previous year’s figure (€0.4m) due to the product mix and the costs arising in connection with the Print China trade fair.
Despite the strong growth in service business, orders in Digital & Web came to €31.9m, thus falling short of the previous year’s figure of €45.2m due to lower orders for newspaper and flexible packaging printing presses. At €32.4m, revenue remained at the prior year’s level. The previous year’s figure of €32.5m had been spurred by high service revenue due to large press relocations. At –€5.6m (–€4.5m in the previous year), EBIT was burdened by market-entry and growth-related expenses. At €85.4m, order backlog and capacity utilisation are at a high level.
More orders for services and presses for security printing and direct glass decorating caused order intake in the Special segment to rise by 37.7% to €80m. Revenue climbed by 20.8% to €92.8m. At €331.7m, the order backlog at the end of March was 6.2% higher than it had been twelve months earlier. Following a segment profit of €3.8m in the previous year, EBIT came to €2m in the first quarter of 2019.
more detail at: https://us.koenig-bauer.com/news/details/article/koenig-bauer-with-102-higher-order-intake-2/