Koenig & Bauer News Feed http://www.koenig-bauer.com/ en Koenig & Bauer AG Sun, 17 Feb 2019 09:06:19 +0100 Sun, 17 Feb 2019 09:06:19 +0100 news-1301 Tue, 05 Feb 2019 22:17:35 +0100 Great American Packaging Invests In Koenig & Bauer-Flexotecnica EVO-XD Press https://us.koenig-bauer.com/us/news/details/article/great-american-packaging-invests-in-koenig-bauer-flexotecnica-evo-xd-press/
  • New press will drive opportunities for sustainability and more sophisticated branded packaging
  • Southern California printer experienced rapid growth rate of 75% in last eight years
  • Creating more sophisticated images in both process and spot color
  • Press will be installed at the firm’s 40,000 sq ft headquarters in Los Angeles
  • In today’s flexible packaging market, there are two main drivers influencing brands and their customers: a demand for both sustainability and more sophisticated colorful branding. Sustainability is a key trend especially for manufacturers of food and retail products. New mandates from government and major retailers are driving the demand for eco-friendly alternatives to non-recyclable multilayer stand-up pouches and films. Manufacturers are also being asked to produce recyclable multi-layer pouches and films with sophisticated colorful artwork in a cost-effective manner.

    It is in this environment that Great American Packaging, a vertically-integrated manufacturer of custom printed flexible packaging, is being asked to extrude, print, and convert top notch branded products for businesses in a wide range of styles and sizes.  Founded more than 50 years ago, the well-known firm has placed a premium on expanding its deep ties with its existing customers as well as focusing on new customer growth.

    This path has proven very fruitful. “We have grown and evolved exponentially in recent years,” says Greg Gurewitz, GAP’s CEO. “Our firm has added technologically advanced equipment, steadily enhanced our workforce, and set our sights on new and exciting products. It is this evolution that has allowed us to a serve a larger, more complex customer base, while still caring for the loyal and dedicated customers who got us here. In the last eight years, we have grown an astounding 75%.”

    Left to right: The Great American Packaging team---Marlene Gurewitz, executive; Greg Gurewitz, CEO; Bruce Carter, president; and Beth Smith, marketing and project manager;--- chose the new Koenig & Bauer Flexotecnica EVO-XD press for the new capabilities and increase in productivity it brings to GAP’s production environment.

    To meet its ever-evolving consumer demand, Great American Packaging decided to purchase a new Koenig & Bauer Flexotecnica EVO-XD eight-color press. Bruce Carter, GAP’s president, explains that the decision grew from the firm’s need for extra capacity due to its high growth, an ability to process print, to improve quality in terms of better control and error detection, and to become more cost competitive.  

    “We are excited about the opportunities the new Koenig & Bauer Flexotecnica EVO-XD press will bring to Great American Packaging,” says Carter. “The new capabilities and increase in productivity it brings will be key in delivering success in our production environment. The new press will give us the tools and resources to grow into new markets we have not yet been able to penetrate.  The EVO-XD will bring us greater efficiency and productivity through increased printing widths, faster printing speeds, quicker changeovers, better quality control and process print capabilities. This competitive advantage will allow us to produce recyclable multi-layer pouches and films with sophisticated artwork in a cost-effective way.”

    The Flexotecnica EVO-XD eight-color press will be the main workhorse press for Great American Packaging.  It will increase the six-color custom printed products currently being produced to eight colors as well as allow the firm to create multi-color images in both process and spot color to meet the demands of all of its customers and the ever-increasing demand for sophisticated images and branding. Art and decoration on flexible packaging is one of the key differentiators in the market place today.  The management team at Great American Packaging has set goals to provide better, more highly decorated products for its customers and consumers.

    Great American’s press operators are eager to take advantage of the high level of automation on the EVO-XD, which include optical error detection, automated viscosity control, auto washup, auto impression setting, servo control, memory of all-important job settings, automatic splicing, and automatic tension control.

    “When we compared the major flexographic press manufacturers, we found Koenig & Bauer to offer the right combination of build quality, company size, technology, and commitment to the U.S. market, sales support and value to make it the right choice for our company,” says Gurewitz. “They offered superior reliability paired with a sleek and functional design. We were especially won over by the cutting-edge support systems for maintenance and repair. Interactive glasses allow our print operators to connect with a Koenig & Bauer Flexotecnica technician and give them a real-time view of our equipment.”

    Founded more than 50 years ago in Los Angeles, Great American Packaging is a family-owned-and-operated, multimillion-dollar company with multiple extruders, printing presses and converting equipment. It is located in the heart of the city’s manufacturing district in a 40,000 sq ft facility. While the firm now operates as a mature, sizable company, its core beliefs in customer collaboration, problem solving and industry-best standards drive Great American Packaging’s operations at every level, every day.  For more information, visit the company’s website at www.greatampack.com.

     

     

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    news-1296 Tue, 29 Jan 2019 22:56:10 +0100 K-1 Packaging Ignites Capacity and Capabilities With Second New Koenig & Bauer Rapida 105 Eight-Color Press https://us.koenig-bauer.com/us/news/details/article/k-1-packaging-ignites-capacity-and-capabilities-with-second-new-koenig-bauer-rapida-105-eight-color-press/
  • Loyal Koenig & Bauer customer continues valued partnership by installing its fourth Rapida press
  • QualiTronic ColorControl inline color measurement and control camera system monitors and maintains color consistency for color critical work and provides useful data for clients
  • UV printing capability boosts throughput and turnaround
  • When an iconic Los Angeles Lakers basketball star retires from the game and needs a high-end custom-designed durable packaging creation to market his treasured autographed jersey, where do they turn? When a movie premier is taking place with A-list invitees to receive luxurious custom-designed swag boxes, who gets the nod to produce them? If a well-known perfume manufacturer is launching a new scent, it turns to K-1 Packaging to impress and dazzle consumers with its new luxury product. Not far from the towering Hollywood sign in the Los Angeles hills amid the glitz and glamour of the area’s celebrity-driven market sits the gleaming modern facility of the K-1 Packaging Group, a designer and manufacturer of high-end, graphic packaging materials.

    Known for its strict process control throughout its entire operation to ensure accuracy and precision, its dedicated artisans, and its cost-efficient quality production using high-end technology, K-1 has positioned itself as an essential manufacturer of customized packaging solutions.

    “Our main objective is to add value to a brand’s product by making it stand out on a store shelf and become more exciting and presentable,” says Mike Tsai, president of K-1 Packaging Group. “We produce unique eye-catching packaging designs and deliver premium quality all under the roof at our City of Industry headquarters. Our one-stop shop saves our customers time and minimizes communication between too many vendors.”

    Due to its strong steady growth, Mike Tsai, (right) president of K-1 Packaging Group, has ordered a second Koenig & Bauer Rapida 105 eight-color press, which will sit side-by-side with an existing Rapida 105 41-inch eight-color press, from Marcus Schoen (left), his Koenig & Bauer sales manager.

    With its strong, steady growth, K-1 Packaging is addressing its valued customers’ needs with additional new press technology in the form of a second Koenig & Bauer Rapida 105 eight-color press, which will sit side-by-side with an existing Rapida 105 41-inch eight-color press. Having double the power of two presses allows K-1 the flexibility to easily move jobs between the two models depending on scheduling and other requirements. While much of the new press is identical to the current model, the investment, which is due to be delivered in early 2019, is teeming with modern automated technology, such as fully automated plate loading.

    With color critical packaging a mainstay of its business, K-1 chose to power its new press with Koenig & Bauer’s popular QualiTronic ColorControl system, which it had included in its earlier Koenig & Bauer press model. K-1 found that this inline color measurement and control camera system that monitors and maintains color consistency by taking a snapshot of every printed sheet remains a vital component. The system produces measurement values that serve as a basis for fast dynamic inline control of the ink key settings. Furthermore, the system is able to output measurement reports for K-1 as well as its clients.

    To provide fast turnaround and cater to the wide variety of packaging it encounters, K-1 specifically configured its new Rapida 105 press with a board package and UV capabilities. The board package will allow K-1 to expands its production portfolio and gain greater flexibility with a broader array of possible substrates to accommodate its customer’s wishes. Like the board package, UV capabilities provide the printer with more flexibility in terms of a wider range of substrates in which it can print on. K-1 has come to rely on UV capabilities to produce its highly-critical multi-color and specialized work in one pass. Having UV on its most recent Koenig & Bauer Rapida press allowed the firm to grow market share in this area of high-end carton work and is an essential tool on the upcoming Rapida press.

    “Our partnership with Koenig & Bauer is a strong on-going basis,” says Tsai. “We feel they are dedicated to continually assist us as we grow and support us with proven solutions. No other press manufacturer is as committed to the printing industry as Koenig & Bauer and they continue to provide industry leading innovations. We’ve had a very positive experience with the reliability and performance of our Koenig & Bauer press models for nearly 20 years. This is an important investment for our firm and its future as well as our loyal customers and our combined continued growth.”

    K-1 Packaging Group is a provider of custom packaging solutions for consumer products. The company offers fully integrated services from start to finish, conceptualizes, designs, prototypes, validates, and manufactures. It serves industries ranging from food and beverage, beauty and cosmetic supply, media software and hardware, nutri- and pharmaceutical, to various other consumer products. It is an ISO 9001: 2015 and G7 Master Certified company, which demonstrates its commitment to quality. K-1 is also environmentally responsible by using bio-renewable agri-based inks, 100% wind energy plant, and offering FSC and SFI substrates to its customers. 

     

     

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    news-1274 Mon, 07 Jan 2019 22:24:06 +0100 Excitement Builds at Globus Printing For Koenig & Bauer Rapida 105 41-Inch Six-Color Plus UV Coater Press https://us.koenig-bauer.com/us/news/details/article/excitement-builds-at-globus-printing-for-koenig-bauer-rapida-105-41-inch-six-color-plus-uv-coater-press/
  • New and first Koenig & Bauer Rapida 105 41-inch will be installed in early 2019
  • Replacing two current presses with one Koenig & Bauer
  • Inline UV coating and color control management systems on new Rapida press boost productivity and efficiency 
  • With over six decades under its belt, business continues to prosper at the 160,000 sq ft facility of Globus Printing and Packaging in Minster, OH that sits north of Dayton on the border near Indiana in a beautiful rural area. The keys to its success, explains president Dennis Schmiesing, are its incredible hard-working employees who display its great work ethic and Midwest values, its commitment to investing in new technology and finding like-minded partners, and its confidence to branch off into new areas. With its well-established catalog and bookwork humming along, Globus is steering new business toward food and product carton business within its loyal constituency of Midwest clientele.

    Recently Schmiesing made a strategic decision to add folding carton construction onto the production line at this 100-employee firm. But operating at maximum capacity meant that the firm needed to turn to a speedy and efficient new automated press. After diligent research into various press manufacturers, Schmiesing chose to partner with Koenig & Bauer for the first time and placed an order for a new Rapida 105 41-inch six-color UV press to be delivered in early 2019.

    As Globus Printing and Packaging moves into folding carton production, its team eagerly awaits its first Koenig & Bauer Rapida 105 41-inch six-color UV press. They are (left to right bottom row) Dennis Schmiesing, president; Tony Schmiesing, design & inside sales - packaging division; and Tim Schmiesing, owner. (Top row, left to right) Jason Barlage, plant manager; and Alex Schmiesing, quality manager.

    “As we began to explore new ways to enhance our business, we came to the conclusion that a viable path existed in the form of folding cartons,” says Schmiesing. “Folding carton production became a natural progression for our company for future growth and a tremendous opportunity. This will be our first Koenig & Bauer press but we felt that its leading reputation as a quality manufacturer of presses especially for the packaging and folding carton market made it a preferable selection along with the fact that it provided all of the features we required at a reasonable price.”

    Operating at top speeds and providing increased output, the new fully-automated Rapida 105 set for Globus will be replacing two older non-Koenig & Bauer presses—a 40-inch and 29-inch. It will be installed along with the firm’s book production capabilities: an existing web press and a new folder producing 30,000 signatures per hour.

    “We have high expectations for the new Rapida and are convinced we’ll be seeing impressive new levels of efficiency and productivity,” says Schmiesing. “With all of its automation and considerably higher speed, we believe we’ll reduce makeready by half and double our output. We’re responding to our customers’ growing needs and maintaining our strong commitment to continually invest in the best equipment for our business.”

    What set the Rapida apart in the eyes of Schmiesing was not only its speed and automation but the ability to incorporate UV coating inline and the notable Koenig & Bauer color control system for both its book production and carton manufacturing customers. Currently the firm is employing an offline UV coater but the Rapida will deliver much faster inline production and immediate drying especially for gloss UV on opaque white book covers. Due to the extensive substrate range capabilit of the 29-inch non-Koenig & Bauer press, Schmiesing plans to move book cover production onto the Rapida 105, giving the firm faster makeready on its four-up covers and less waste. Its new packaging customers are particularly demanding to have no color variation on its cartons that must look exactly the same on store shelves. Koenig & Bauer’s popular inline QualiTronic Color Control capability will help press operators ensure that critical color is balanced and maintained throughout the press run. The Rapida’s inline color control and register control of the sheet are all computer controlled and linked to prepress, thus quickly getting the press preset for operation. The system also provides detailed reporting and measurement documentation to pinpoint the accuracy of each sheet as it is printed. Its camera system reads every printed sheet with the same high quality camera that is found on Koenig & Bauer’s currency press models.

    “Since our father established the business in 1957, we’ve taken on the responsibility to build the company with ingenuity and move forward into the next generation. This new Rapida press from Koenig & Bauer well positions us for the future,” says Schmiesing.

    Established in 1957, Globus Printing and Packaging is a full-service printer and folding carton manufacturer located in Minster, Ohio. Globus Printing and Packaging has complete printing and binding capabilities for printed product as well as packaging products where they specialize in the production of commercial catalogs, annuals, workbooks and folding cartons. Additional services offered include kitting and assembly, mail fulfillment and warehousing. For additional information about Globus Printing and Packaging, please contact our Globus Sales Division at 1-800-968-0797.

     

     

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    news-1258 Mon, 10 Dec 2018 16:57:30 +0100 Game On: Cartamundi USA Invests In Superior Koenig & Bauer Rapida Press Technology https://us.koenig-bauer.com/us/news/details/article/game-on-cartamundi-usa-invests-in-superior-koenig-bauer-rapida-press-technology/
  • New feature-rich Rapida offset press will be installed at year’s end
  • Cartamundi is known for its quality, creativity, and innovation
  • Massachusetts plant is the largest games manufacturing facility in North America 
  • The massive East Longmeadow, MA manufacturing facility of Cartamundi USA will be taking delivery of a new large format Koenig & Bauer Rapida press. The new press will be a key component as the facility, which produces 30 million well-known board games a year and is aggressively pursuing additional new business by growing its customer base in the main game aisle, such as new lines of products from other game distributors, as well as seeking local companies to take advantage of its core competencies. This critical investment with its key press-manufacturing partner will provide a number of enhancements at this 1.2 million sq ft facility.

    Known for producing popular board games under contract for a leading toy and board game firm, this sprawling facility and its pressroom are required to produce game boxes that are color consistent throughout long and short runs and printed with the highest quality to attract purchasers and collectible owners on crowded store shelves.

    Specialty items, such as movie versions of all types of games, as well as well-established games require the highest degree of color management. Cartamundi has added Koenig & Bauer’s QualiTronic ColorControl for inline color control with touchscreen on its new large format press. This system measures every sheet for constant print quality over the whole length of a run. The inline color control also provides detailed reporting and measurement documentation to pinpoint the accuracy of each sheet as it is printed---critically important for game boxes that need consistent color across store shelves.

    The Cartamundi pressroom is also driven by fast makeready and quick turnaround in order to efficiently produce the large volumes of work now and in the future. Management’s two immediate goals are to generate new business from existing clients and add new customers to its portfolio. In order to be competitive, the firm is taking advantage of Koenig & Bauer’s innovative technology and incorporating its DriveTronic SIS sidelay-free infeed, and fully automated plate changing system on the incoming Rapida press. This system will boost production, making it even more efficient and profitable, as well as furthering faster turnaround, and increasing output. Ultrafast makeready will be enjoyed due to simultaneous plate changing.

    Having the latest automation on its new Koenig & Bauer press is key for Cartamundi because it receives unlimited creative challenges from its customers for specialty anniversary editions, collector’s items, vintage board and traditional games. The Cartamundi Group continues to invest in the facility ever since it purchased the factory in 2015 to expand its production of card and board games around the world. It has increased staffing by 13.5% to 480 employees.

    The new Koenig & Bauer Rapida press upcoming installation follows other recent steps taken at the facility, such as bolstering crucial positions in customer-facing areas as account representatives and project managers. The new press and these positions are creating a sharper focus on customer service and quality. 

     

     

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    news-1111 Thu, 23 Aug 2018 10:20:00 +0200 Koenig & Bauer Rapida LiveApp Is Selected For The Prestigious 2018 InterTech Technology Award https://us.koenig-bauer.com/us/news/details/article/koenig-bauer-rapida-liveapp-is-selected-for-the-prestigious-2018-intertech-technology-award/
  • Offers control of press operations and critical press information right at a press operators’ fingertips on easy-to-carry mobile smartphone devices
  • Integrates video content to help an operator interactively learn and also implement important machine processes such as blanket changing or roller adjustment.
  • Incorporates both a maintenance manager and functions for inventory management.  
  • The Rapida LiveApp will be honored at this year’s InterTech Technology Awards on September 30 at PRINT 18 in Chicago (1)

    Koenig & Bauer (US) is honored to learn that its Rapida LiveApp has been selected by an independent panel of judges for the prestigious Printing Industries of America (PIA) 2018 InterTech Technology Award. The Rapida LiveApp, the first of its kind in the industry, was one of twelve of the 29 entries to be chosen to receive an InterTech Technology Award. It was deemed by the judges as meeting the award criteria of being truly innovative and expected to have a major impact on the graphic communications industry. The InterTech Technology Award will be presented before an audience of industry leaders during the 2018 Premier Print Awards and InterTech Technology Awards Reception & Ceremony, Sept. 30 at the J.W. Marriott in Chicago during the Print 18 trade fair.

    “The Rapida LiveApp shows the power of apps to add value in the pressroom,” said Jim Workman, vice president of PIA’s Center for Technology and Research. “The judges found the entire app innovative, especially noting its ability to track and communicate maintenance issues and provide easy access to training resources.”

    The Rapida LiveApp demonstrates how Koenig & Bauer Sheetfed embodies its corporate vision of setting industry standards in terms of customer focus, innovative solutions, and proactive services. The app provides printers with state-of-the-art tools for a wide range of sheetfed offset applications.

    Comprehensive range of functionalities

    The Rapida LiveApp offers dual functionality. On the one hand, press operators can start or stop their Rapida sheetfed offset press from a mobile location, adjust settings and perform operational tasks as well as obtain information on press status and print jobs. The maintenance manager displays a list of pending maintenance tasks and simplifies these tasks by providing relevant instructions and videos. Successful maintenance can be confirmed and commented upon interactively.

    On the other hand, the app includes a powerful tool for warehouse management and control, including batch recording and tracking. Inks, coatings and printing aids used can also be clearly assigned to the respective print jobs. Ordering processes are automatically triggered when minimum quantities are not met.

    “We are honored to be chosen for this prestigious award from PIA,” says Thomas Göcke, head of marketing and CRM at Koenig & Bauer Sheetfed. “With the Rapida LiveApp we are the first in the graphic arts industry to offer our users a completely new experience when it comes to the operation of sheetfed offset presses. We are delighted that print users and independent institutions appreciate this so much. It is truly an innovative operating concept.”

    The Rapida LiveApp incorporates a modern operating philosophy into print and warehouse management (2)

    Eric Frank, senior vice president of marketing and product management at Koenig & Bauer (US) adds: “The special added value provided by the app lies in the mobile operation and the maintenance manager, which explains the necessary maintenance tasks step-by-step and documents these tasks at the same time.”

    Project manager Stefan Singer, head of electrical engineering at Koenig & Bauer in Radebeul, is impressed by the success of the product: “It fills my colleagues and I with pride that the app is so well received by the industry.”

    The Rapida LiveApp has also received several awards in Europe, including the German Design Award in the category "Excellent Communications Design - Apps" and the "automation award". The InterTech Technology Award is the first prize in recognition of this pioneering operating philosophy for sheetfed offset presses in the U.S., from the world's largest printing association.

    Since 1978, the InterTech™ Technology Awards have honored technologies predicted to shape the future of print and graphics communications. Past honorees have introduced entirely new products and services that have revolutionized ways of working and enabled printers to operate more efficiently. 

    Koenig & Bauer (US) is located in Dallas, Texas and a member of the Koenig & Bauer Group, which was established 200 years ago in Würzburg, Germany. Koenig & Bauer’s claim, “We’re on it.” gets to the heart of Koenig & Bauer’s values and competencies for all target groups. The group's product range is the broadest in the industry; its portfolio includes sheetfed offset presses in all format classes, post press die-cutters, inkjet presses and systems, flexographic presses, commercial and newspaper web presses, corrugated presses, special presses for banknotes, securities, metal-decorating, smart cards, glass and plastic decorating. For more information visit the company's web site at www.koenig-bauer.com.

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    news-1095 Wed, 01 Aug 2018 06:58:00 +0200 Strong order intake of €454.4m in the second quarter https://us.koenig-bauer.com/us/news/details/article/strong-order-intake-of-EUR4544m-in-the-second-quarter/
  • 17.2% rise in orders in H1
  • Large orders in security printing and order gains in packaging printing
  • Greater accumulation of deliveries in H2 than in the previous year
  • EBIT below prior year due to delivery-related lower revenue
  • With a book-to-bill ratio of 1.37 order backlog grows to an extraordinarily high €805.8m
  • Good cash flows from operating activities of €17.4m
  • Equity ratio of 35.6%    
  • With order intake reaching a particularly high €454.4m in the second quarter and the order backlog rising to €805.8m at the end of the first half, the Koenig & Bauer Group is on track to meet its targets for 2018. Strong security business and more orders in packaging printing caused order intake to rise by 17.2% to €705.3m in the first half of 2018 (2017: €601.9m). Driven by the good Q2 figure of €297.1m, group revenue came to €514.4m but fell short of the previous year’s figure of €538.9m due to the even greater accumulation of delivery dates in the second half of the year. This was also reflected in EBIT, which at €10.6m was lower than in 2017 (€16.3m).

    Weltneuheit: Flachbettstanze Ipress 106 K PRO mit bewährtem Anleger der Rapida-Maschinen für den wachsenden Faltschachtelmarkt (1)

    Sheetfed expands market leadership in large-format

    The Sheetfed segment reached a strong order intake of €326.3m, exactly matching the previous year’s figure, which had been influenced by the Print China fair. President and CEO Claus Bolza-Schünemann: “Substantial growth was achieved in large-format cardboard printing. As the world market leader in folding carton printing, we are benefiting from heightened capital spending of the international packaging printers.” EBIT of €7.7m was below the previous year’s figure (€12.1m) due to the delivery-related decline in revenue from €307.8m in 2017 to €283m.

    Despite the encouraging growth in new business in flexible packaging, orders in Digital & Web (€84.7m) were slightly down on the previous year (€85.7m) due to fewer orders for newspaper web presses and services. In addition to the market-entry costs for corrugated and flexible packaging in particular, EBIT was significantly burdened by the decline in revenue from €68.3m to €55.8m. CFO Mathias Dähn: “This was materially due to the decline in revenue from digital printing presses as a result of subdued demand. However, we see significantly greater short and medium-term potential in the large corrugated and foil printing markets, which are expanding at above-average rates. The targeted expenses required for future growth will leave traces on our cost position, exerting pressure on segment earnings.”

    Driven by large orders in security printing and growth in marking and coding, order intake in the Special segment rose by 52.8% to €330.6m (2017: €216.3m). With revenue rising slightly from €189.2m to €195m, EBIT came to €14.4m, thus matching the previous year’s figure (€14.6m). President and CEO Claus Bolza-Schünemann: “With the major order received from Giesecke+Devrient for the delivery of several press lines for the production of ultra-secure banknotes in Egypt, we have a high degree of capacity utilisation in security printing until well into 2019.”

    Strong financial and balance sheet profile

    Cash flows from operating activities rose substantially over the previous year (€–20m) to €17.4m. The free cash flow was burdened by the final payment instalment of €34.8m made in Q1 for the external funding of a part of the pension provisions. In addition to net liquidity of €48.1m and securities of €14.6m that can be liquidated at any time, the group also has access to syndicated credit facilities. The equity ratio stood at 35.6% at the end of the first half of 2018.

    Nach anstehender Kundenabnahme Auslieferung der digitalen CorruJET-Bogenmaschine an bekannten Wellpappendrucker (2)

    Group targets for 2018

    In 2018, the management board expects to achieve organic growth of around 4% in group revenue and an EBIT margin of around 7%. With many projects still in the pipeline in all business fields, the forecast is based on the high order backlog of €805.8m as of the end of the first half year together with further progress being made in the group-wide service initiative and the cost-cutting projects in security printing, purchasing and production. These projects should cause earnings to rise by €70m over 2016 by 2021.

    CFO Mathias Dähn: “The achievement of the targets 2018 requires the execution of orders on time in the second half of the year and particularly in Q4 with the accumulation of press installations. Given the high capacity utilisation and external and internal delivery bottlenecks in parts, this is a challenging task to which we pay particular attention. However, we consider it to be particularly important to utilise the opportunities for growth being offered by the market in new press business in order to widen the installed base as the foundation for further growth in service business.”

    Medium-term goals until 2021

    Depending on global economy, end markets and the necessary investments in growth, management is targeting a group-wide organic revenue growth rate of around 4% p.a. and an EBIT margin of between 4% and 9% by 2021. Product innovations in corrugated printing and 2-piece can decorating are not included in the medium-term targets, neither revenue nor costs. President and CEO Claus Bolza-Schünemann: “In addition to our printing, finishing, coding and postpress solutions for cardboard, banknotes, cans, glass and hollow containers and other products, we are particularly focusing on corrugated board and flexible packaging. With the focus on the growing packaging printing, we want to boost our revenue and profitability as well as the stability of our business on a sustained basis.”      

    Figures at a glance 

    The financial statements can be downloaded as a PDF file from here

    en/investor-relations/financial-reports/

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    news-1019 Mon, 21 May 2018 23:21:10 +0200 Commercial Printer Brown Printing Sees Incredible Growth After Koenig & Bauer Rapida 106 Installation https://us.koenig-bauer.com/us/news/details/article/commercial-printer-brown-printing-sees-incredible-growth-after-koenig-bauer-rapida-106-installation/
  • Makeready reduced by 50% and production run time reduced by 35%
  • Replaced existing sheetfed press with firm’s first-ever new Rapida 106 41-inch
  • Loyal customers cite quality, expert service, and family-owned values 
  • How does a commercial printer with nearly 80 years of experience plan for success in a fast-changing industry? In the case of Brown Printing, a Portland, OR, family-owned business, it is creating a truly differentiated experience for its customers with the help of a new fully automated Rapida 106 41-inch six-color UV press. The firm decided to purchase its new press to maximize the advanced technologies and unique innovations from Koenig & Bauer selected specifically by its executive team to continue its growth into the next generation of ownership.

     “We have developed a reputation for giving our clients personalized attention, professional knowledge, competitive pricing and timeliness,” says Randy Murray, Brown’s vice president. “Using environmentally-friendly practices, our goal is to provide our customers with a quality print job, no matter how large or complex. When a newly-installed existing 40-inch sheetfed press was not performing as promised, my team and I began to seek out a new press manufacturer that could deliver exactly the technology and automation needed to provide our level of quality to our customers. In a decisive move, we removed the existing press and replaced it with the new Rapida 106 press. Since its installation five months ago, we’ve reduced our production run time by 35%, found that we have less preplanning for each job, and most surprising, we’ve reduced our makeready times by 50% and even more on difficult runs. The print quality is excellent and we’re just getting started.”

    Left to right: The team at Brown Printing: Peter Ochs, Brown’s lead pressman; Shawn Irish, pressroom manager; Randy Murray, vice president; and Don Murray, president/owner; are finding that their new Koenig & Bauer Rapida 106 press is producing more work more efficiently than ever before.

    Murray was also pleased with the fast start-up of the new Rapida 106 allowing his firm to bring in new unexpected business. For example, Brown has just finished a large push of catalogs that it would not have had the capability to complete without the new Rapida 106. By equipping the new press with full UV technology, Brown has been able to win new work for jobs such as specialty coating and packaging. 

    “Our goal is to keep ahead of our competition,” says Murray. “Now that we have full UV printing and coating, high speed output, and color control with our new Rapida 106, we are able to differentiate ourselves in our market. We’re seeing rapid growth because we have the ability to turn projects fast at the highest quality.” 

    Since its start as a family-run business in the early 20th century, Brown has evolved into a solid full-service commercial printer with offset and digital press options. Over the last eight decades, the company has built its reputation on being a first-adopter of new technology. “Ten years ago, we were a 20-inch two-color shop; our decision to move into a 40-inch press with UV as well as adding digital printing capabilities has made a huge positive impact for us,” says Murray. “We’re going to continue to invest in new technology. It allows us to be more competitive and produce higher quality work.” 

    Quality is one of the key mainstays of Brown’s success. Its customers note that Brown’s print output is exceptional and unmatched by any other printer. It was important to Murray to include the Koenig & Bauer’s QualiTronic ColorControl inline color measuring system on its new Rapida 106 to maintain its color expertise and enhanced color accuracy for its customers. This unique system uses an inter-deck camera system integrated directly into the press. The control strips can be positioned either at the front or in the center of the sheet. This ensures that printing jobs maintain color integrity on all customer work and provide limitless printing applications. 

    “We are extremely impressed with the expert method that Koenig & Bauer builds its presses,” says Murray. “Our Rapida 106 is a strong, well built machine equipped with unique automation that allows us to produce more work more efficiently than ever before. We needed a new press that could accommodate our continued fast growth. The advanced technology on the Rapida 106 increases our company’s output capacity and has immediately delivered efficiency and cost savings. It’s no wonder that it has gained a reputation as the makeready and production output world champion in medium format.” 

    Its healthy mix of high-end commercial customers from the Pacific Northwest are drawn to the firm’s personable approach and convenient location near the famous Rose Garden in downtown Portland. Customer service is one of its strong distinctions amid the current competitive landscape as well as its specialty equipment and services that help clients with projects that require letterpress, foil stamping, embossing and its ability to offer custom ink mixes. The firm maximizes the value and beauty of each of its perfectly printed products with a variety of finishing techniques such as die-cutting, folding, gluing, and kiss cutting. 

    With a strong anchor in the commercial printing market, Brown has begun to diversify its services by adding packaging to its repertory. To accommodate a variety of run lengths, Brown is utilizing the state-of-the-art automation modules, such as the DriveTronic SIS sidelay-free infeed, on the Rapida 106 to quickly complete job changeovers and shorter production deadlines.  The fast run speeds of the Rapida 106 equate to less time on-press as well as shorter delivery times. Since its installation, the press has performed at optimum conditions and become Brown’s “go-to” press. 

    Brown Printing is a family-owned commercial printing company providing a complete range of services for clients large and small. The Portland, OR business offers a full range of services—from simple one-color jobs to six-color inline printing with in-house foil stamp and die-cut. For nearly 80 years, it has gained a reputation for giving its clients personalized attention, professional knowledge, competitive pricing and timeliness. Using environmentally friendly practices, its goal is to provide its customers with a quality print job, no matter how large or complex. 

     

     

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    news-1018 Wed, 09 May 2018 22:56:36 +0200 Southern Champion Tray Maintains Strong Partnership With Koenig & Bauer As It Pushes ‘Start’ On Its New Rapida 106 Seven Color Press https://us.koenig-bauer.com/us/news/details/article/southern-champion-tray-maintains-strong-partnership-with-koenig-bauer-as-it-pushes-start-on-its-new-rapida-106-seven-color-press/ ·        New Rapida 106 41-inch press provides footprint to support continued growth

    ·        Expecting a 20% overall improvement in OEE on this new machine

    ·        Retail-based packaging customers require shelf appeal with bold graphics

    As one of the most important market players in the global food service and custom packaging segments, Southern Champion Tray, headquartered in Chattanooga, Tennessee, relishes its status as a dominant force in the production and distribution of paperboard packaging products for the bakery, food service and custom retail markets. One of its most important divisions sits further south in Mansfield, TX, part of the Dallas-Fort Worth Metroplex. This 90 year old, third generation packaging printer with approximately 700 employees throughout its entire company, has been making significant investments at its 120-employee Mansfield site. In the past 24 months it has increased the facility with an additional 25,000 sq ft and completed an office renovation. New equipment, such as a paperboard sheeter, die cutter, LED-UV curing to lift the level of its graphics, scrap reclamation system, and digital printing systems, has been added. Why the infusion of capital? The investments align with the growing Dallas/Fort Worth market and more importantly, is a vote of confidence toward the firm’s highly devoted and talented staff based in the Mansfield operation. Plus, the Mansfield plant supplies cartons to multiple states in the Southwest region of the U.S., and even transfers product to the Chattanooga, Tennesse area for national distribution. 

    With the foodservice packaging market growing at a very rapid pace, management saw fit to add another key piece of equipment. Its pressroom has recently seen the installation of a new towering iconic blue Koenig & Bauer Rapida 106 41-inch seven-color press. This new multi-million dollar investment is being located next to another Rapida 106 seven-color press that was installed several years ago.

    (Far left) Rich Dreshfield, KBA North America senior vice president of sheetfed sales; and Scott Brown, KBA North America regional sales manager (far right); join SCT Mansfield employees Deven Dye, production manager (second from left); Robi Siklosi, manager of print and digital technology (third from left); and John Moreno, pressroom manager (second from right); to celebrate the installation of the new Koenig & Bauer Rapida 106 seven color press.

    “Our Mansfield operation is a fast-paced manufacturing environment that has to address all of the evolving trends in our market,” says Brian Hunt, SCT’s COO. “Our customers are demanding higher-end graphics, shorter run quantities, and faster turnaround. We’ve solved these demands by ensuring that our new Rapida 106 is running at its maximum press capabilities to print our cartons and improving make-ready speeds---all of which are game changers. The new Koenig & Bauer ColorTronic ink control system has made a big difference in reducing our make-ready times. Our new digital printing system is a great solution for small volume items and matches well with the capabilities of our Rapida 106.  We are quite confident that we can handle all of the demands requested by our customers in the area of folding cartons.”

    While SCT has dominated the food paperboard packaging market, it is seeing fast growth in many other end-use segments including nutraceuticals and pet pharmaceuticals. Consumers are also increasingly shopping for organics and supplements. To set themselves apart on the store shelf, manufacturers are turning to bold colorful graphics to entice the consumer’s eye. For example, says SCT, it is running strike-thru varnish to increase impact at the retail shelf. To respond to the ever changing needs of the retail consumer, manufacturers are asking SCT for shorter run lengths and quicker turnaround.. SCT has also broadened its capabilities to further expand  warehousing of its customer’s packaging.

    The new press brings a host of new automated features that add speed and efficiency to SCT’s output, according to John Simpson, SCT’s general manager of the Mansfield facility. The Rapida 106’s color management system is adding value in consistency and getting up to color much faster, he says. Sheet delivery is also much improved allowing for higher machine speeds. Pressmen are impressed with its operator consoles allowing them to be much more efficient and effective.

    “We expect a 20% overall improvement in OEE (overall equipment effectiveness) on this new machine,” says Simpson. “There’s no doubt that this machine runs well at rated speed. We intend to take full advantage of this improved efficiency and tout its unique features to our customers. Internally, we’ll be seeing improved efficiency in make-ready and run speeds that will improve our cost competitiveness.”

    When SCT determined that it needed another new press, part of its calculation was to keep its Mansfield plant humming without interruption. “One of the hallmark attributes of KBA North America is its service mindset,” says Hunt. “In the fast-paced business of supplying packaging to food manufacturers, we cannot afford to be without a printing press. The entire KBA North America Company understands that mindset and is focused on keeping us operational.” 

    Adds Hunt, “As in any competitive business, one must evaluate all suppliers to understand innovations in technology and/or features and benefits that could be of value in an ever-changing business environment. We have had an outstanding relationship with KBA North America and already have two other of its presses in our converting system. In this case, having a Rapida 106 in operation made us more inclined to pursue a new Koenig & Bauer press.”

    Although SCT has celebrated more than nine decades in business, it continues to set new goals for the future. “Our customers identify SCT as having best-in-class service,” says John Zeiser, president and CEO of Southern Champion Tray. “With the advent of E-commerce and the speed desired by consumers, we are continually challenging our leadership team. To respond, we are continually investing in our employees, capital equipment, and facilities to ensure that we are always exceeding our customer’s expectations.”

    Established in 1927, Southern Champion Tray is a third-generation family-owned business producing a wide variety of folding cartons used throughout the continental United States, Puerto Rico, Canada, and Mexico. A team of over 400 employees are based in the firm’s converting plants in Chattanooga, Tenn. and Mansfield, Texas. The company serves a broad base of markets, including bakery, foodservice, supermarket, institutional, industrial, retail, computers and electronics, personal care, hardware, automotive, medical, office supply, pet supplies, toys, textiles, and sporting goods. Its advanced sheetfed lithographic and flexographic web presses in six- and seven-color configurations along with converting capabilities such as slitting, sheeting, die cutting, gluing, windowing, clamshell, and tray forming provide a wide array of products for its customers.

     

     

     

     

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    news-1004 Thu, 03 May 2018 07:23:00 +0200 First quarter of 2018 in line with expectations https://us.koenig-bauer.com/us/news/details/article/first-quarter-of-2018-in-line-with-expectations/
  • Order intake lower due to the previous year’s substantial security press project
  • Well filled project pipeline in all business fields
  • Revenue and EBIT below prior year due to stronger concentration of deliveries in H2
  • Service revenue up
  • Increase in order backlog to €648.5m with a book-to-bill ratio of 1.15
  • Increase in equity ratio to 37.9%
  • Net liquidity including securities of €103.7m    
  • After fully achieving and even exceeding its guidance last year thanks to strong revenue and earnings performance in the fourth quarter, the Koenig & Bauer group remains on track to meet its targets for 2018, underpinned by a high order backlog and a well filled project pipeline. In addition to good group-wide capacity utilisation, the progress that has been made in the projects for achieving further EBIT gains by 2021 is providing a solid basis. Service revenue climbed from €67.4m in the previous year to €71.8m in the first quarter of 2018.

    At €250.9m, group order intake in the first three months of 2018 was down on the previous year’s figure of €321.5m, which had been influenced by a major security project. CEO Claus Bolza-Schünemann: “Alongside our expansionary service business, we made further progress in the flourishing packaging printing. With our customer-centric solutions, we were able to increase order intake in cardboard and film printing, metal decorating, marking and coding printing. As expected, demand for digital printing presses was subdued.” Group revenue (€217.3m) and EBIT (–€1.9m) were down on the previous year (€259.1m and €5m, respectively) in Q1. CFO Mathias Dähn: “Due to the delivery dates requested by our customers, press installations in 2018 will be concentrating on the second half of the year and particularly Q4 to an even greater extent than last year.”

    Mit proaktiven Serviceangeboten wie umfassende Analysen zur Prozessoptimierung und Effizienzsteigerung der Kundenanlagen konnte Koenig & Bauer die Serviceumsätze steigern (1)

    Order gains in packaging printing

    Order intake in the Sheetfed segment, which is dominated by packaging printing, rose by 5.3%. Ralf Sammeck, the management board member responsible for this segment: “After widening our share of the global market across all format classes in 2017, we expanded our market leadership in large formats in Q1 2018.” Sheetfed EBIT was down on the previous year due to the delivery-related decline in revenue. Despite the growth in new business for flexible packaging, Digital & Web order intake fell short of the previous year as fewer orders were received for digital and newspaper web presses. With revenue up slightly, EBIT came under pressure from the low revenue level and R&D expenses as well as expenses on future growth. Despite the significant growth in metal decorating and marking and coding, order intake in the Special segment fell short of the previous year, which had included a large order for a security printing press. CEO Claus Bolza-Schünemann: “With a good project pipeline in security printing, the booking of the usually large orders is not spread evenly over the individual quarters.” EBIT in the Special segment was also slightly lower than in the previous year due to the delivery-related decline in revenue.

    Balance sheet strengthened substantially

    Cash flows from operating activities rose substantially over the previous year (–€14.9m) to €20.3m. The free cash flow was burdened by the final payment instalment of €34.8m for the external funding of a part of the pension provisions. CFO Mathias Dähn: “Following the transfer of our reinsurance claims against the insurer to the beneficiary active employees, we netted the financial receivables against the pension provisions. This reduced the balance sheet total by €59.9m, causing the equity ratio to rise to 37.9%.”

    Die im Großformat gestiegenen Bestellungen trugen zum Anstieg des Auftragseingangs im Sheetfed-Segment um 5,3 % bei (2)

    Group targets for 2018: revenue growth of around 4% and an EBIT margin of around 7%

    Looking ahead over the next few quarters, the management board expects a positive order development thanks to the ongoing expansion of the service business, growing demand in the packaging markets and expected new orders in security printing alongside the high order backlog. CFO Mathias Dähn: “The significantly increasing revenue momentum in the second half of the year together with further progress made by the cost-cutting projects in security printing, purchasing and production will lead to a clear improvement in group earnings. In the absence of any material deterioration in global economic and political conditions for our international business, we expect to achieve organic growth of around 4% in group revenue and an EBIT margin of around 7% in 2018. This will put us on track to achieving our EBIT margin target of 9% and an organic revenue growth rate of around 4% p.a. by 2021.”

    Progress made in projects for additional profitable growth

    Koenig & Bauer is working intensively on further applications in packaging, digital and industrial printing to achieve additional profitable growth beyond its medium-term goals. CFO Mathias Dähn: “One focus is the large and significantly growing market for analogue direct printing on corrugated board, for which we have developed the CorruFLEX and CorruCUT sheetfed flexo presses, both of which have a number of unique features. An important milestone was reached with the first CorruCUT order from the renowned pilot customer Klingele. After the completion of initial testing at our new demonstration centre in Würzburg, the CorruCUT will be installed on the first customer’s premises at the beginning of 2019. As a globally leading supplier of presses for 3-piece can decorating, we want to expand our profile by entering the 2-piece can market. The newly developed CS MetalCan offers users decisive advantages. Following two contract signings at the end of last year, we will be commencing intensive field-testing shortly with the target of sales launch at the end of 2018.”

    Figures at a glance 

    The financial statements can be downloaded as a PDF file from here

    en/investor-relations/financial-reports/

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    news-942 Thu, 22 Mar 2018 07:26:00 +0100 Koenig & Bauer achieves or exceeds targets for 2017 https://us.koenig-bauer.com/us/news/details/article/koenig-bauer-achieves-or-exceeds-targets-for-2017/
  • New orders up 10.1%
  • 4.3% increase in revenue
  • Book-to-bill ratio of 1.04
  • 8.7% increase in order backlog
  • EBIT margin of 6.7%
  • Equity ratio of 36.4%
  • Net liquidity including securities of €121m
  • Dividend of €0.90 per share proposed
  • Group targets for 2018: revenue growth of around 4% and an EBIT margin of around 7%  
  • Driven by strong revenue and earnings in the fourth quarter, Koenig & Bauer fully achieved or exceeded its guidance for 2017. The printing press manufacturer’s consolidated figures show that with the increase in revenue, earnings and order intake achieved last year it is well on track towards achieving its medium-term targets by 2021.

    Growth in the packaging markets and service business, further market share gains

    With security business remaining strong, Koenig & Bauer achieved growth in the packaging markets for cardboard printing, metal, glass and hollow container decorating and coding as well as with new products such as rotary and flatbed die-cutters. Market share was widened in all business fields. CEO Claus Bolza-Schünemann: “In addition to the market success of the rotary die-cutter, the sharp rise in new contracts for flatbed die-cutters over the previous year exceeded our expectations substantially.” Moreover, the group’s revenue and earnings growth was particularly underpinned by expansion in service business. Thus, the proportion of group revenue generated by service business widened from 23.5% in the previous year to 25.6%. CFO Mathias Dähn: “This shows that the group-wide service initiative launched at the beginning of 2016, with which we want to widen the share of service business in group revenue step by step to 30% by 2021 in the interests of greater earnings potential and stability, is now beginning to bear fruit. We want to create satisfied and loyal customers by offering excellent service. At the same time, rising service revenue is an important measure of customer satisfaction for us.”

    Für den großen und signifikant wachsenden Markt des analogen Direktdrucks auf Wellpappe hat Koenig & Bauer die Bogen-Flexomaschinen CorruFLEX und CorruCUT (mit integrierter Rotationsstanze) entwickelt. Eine CorruCUT wird Anfang 2019 beim Pilotkunden Klingele installiert (1)

    Progress made in projects for additional profitable growth

    Koenig & Bauer is working intensively on further applications in packaging, digital and industrial printing to achieve additional profitable growth beyond its medium-term targets. One key aspect is corrugated board printing, which is flourishing at above-average rates thanks to long-term trends such as home-shopping as well as more sophisticated and colourful outer packaging. CEO Claus Bolza-Schünemann: “We have already started marketing the sheetfed flexo presses CorruFLEX and CorruCUT (with an integrated rotary die-cutter), both of which have been developed with a number of unique features. In early 2019 we will be installing a CorruCUT system at the pilot customer Klingele.” A further target market is 2-piece can printing. Explains CFO Mathias Dähn: “As a globally leading supplier of presses for 3-piece can printing, we want to expand our profile by entering the 2-piece can market. Presented in May 2017 with a number of important advantages for users, the newly developed CS MetalCan press for 2-piece can decorating met with strong customer interest. Following two contract signings, we are now able to commence intensive field-testing with the target of sales launch at the end of 2018.” In digital printing, Koenig & Bauer sees an additional growth option as digitisation no longer poses any substitution risks in the markets addressed by the company.

    Good group business performance in 2017

    At €1,217.6m, group revenue reached the target corridor of up to €1.25bn defined in the guidance. With revenue up 4.3% over the previous year (€1,167.1m), Koenig & Bauer fully achieved its mid-term organic revenue growth rate of around 4% p.a., thus more than making up for the further decline of €25m in revenue from newspaper and commercial web presses. The group’s new orders rose substantially by 10.1% over 2016 (€1,149.7m) to €1,266.3m. With orders up 29.7% over the previous year, the fourth quarter was particularly strong. The book-to-bill ratio came to 1.04, while order backlog stood at €606.2m, up 8.7% on the previous year.

    EBIT margin of 6.7% exceeded guidance of around 6% for 2017

    The increased revenue in tandem with more service business across the Group caused the profit rise. In addition to expenses for portfolio additions, new products and IT systems, earnings came under strain from production service provider KBA-Industrial Solutions and the measures to optimise flexible packaging printing. Adjusted for the non-recurring income in the previous year, EBIT climbed from €62.9m to €81.4m. Driven by the positive earnings development and outlook for the group, a tax income of €12.7m arose again from the recognition of deferred tax assets. At €81.1m, group net profit (previous year: €82.2m) translates into earnings per share of €4.91 in 2017 (2016: €4.98).

    Mit dem Abschluss von zwei Kundenverträgen für die für den 2-Teil-Dosendruck mit vielen Alleinstellungsmerkmalen entwickelte CS MetalCan starten intensive Feldtests mit dem Ziel der Verkaufsfreigabe Ende 2018 (2)

    Dividend of €0.90 per share proposed

    “Thanks to the positive earnings performance and the retained profit generated by the holding company Koenig & Bauer AG, we are able to continue our dividend policy with a distribution rate of between 15% and 35% of the group’s net profit,” said CEO Claus Bolza-Schünemann. Accordingly, the Management Board and the Supervisory Board will be asking the shareholders to approve a dividend of €0.90 per share at the annual general meeting on 9 May 2018. This is equivalent to a dividend ratio of 18.4% of Group net profit.

    Order and earnings momentum continuing for Sheetfed

    Driven by innovative, bespoke solutions for folding carton and commercial printing as well as a broader sales and service footprint in the markets of the future, order intake in the Sheetfed segment, which as the largest segment is dominated by packaging printing, rose by 15.2% over the previous year (€569.7m) to €656.2m. Revenue climbed by 7.3% over 2016 (€615m) to €660.2m. EBIT increased from €31.3m in the previous year to €37.5m, with the EBIT margin widening from 5.1% to 5.7%.

    Digital & Web investing in the markets of the future

    Digital & Web order intake and revenue fell short of the previous year primarily as a result of the expected further decline in orders for newspaper and commercial web presses. Segment earnings came under strain from optimisation efforts for flexible packaging printing as well as R&D expenses, resulting in an EBIT of –€4.3m, down on the previous year’s figure of €0.5m. CFO Mathias Dähn: “With the measures taken in flexible packaging printing, a turnaround is apparent, although it will be important to continue to take the right actions to close the gap between our company and the successful leaders of this attractive market.”

    Besonders erfreulich war die Auftrags-, Umsatz- und Ergebnisentwicklung 2017 im Geschäft mit Flachbettstanzen (3)

    Order intake, revenues and profit up in the Special segment

    Growth in orders for security printing, metal and glass/hollow container decorating as well as coding boosted order intake by 16.1% to €533.7m (2016: €459.7m). Revenue grew by 5.3% from €444.3m in the previous year to €467.9m. Following a segment profit of €44.3m in the previous year, EBIT of €53.7m was recorded in 2017.

    Stronger balance sheet and financial power

    Cash flows from operating activities increased slightly from €21.9m in the previous year to €23.8m despite the higher net working capital. Following the successful efforts to reduce working capital in large parts of the group, the measures already taken to optimise receivables and inventories in security printing will not have short-term effects. The free cash flow of –€59.6m (2016: €2.3m) was burdened by high investments (€48.5m) and payment instalments (€36.8m) made for the external funding of a part of the pension provisions. As well as the internal liquidity generated by operating business, the group has access to credit facilities provided by a syndicate of renowned banks. In addition to a guarantee facility of €200m, the syndicated finance includes a revolving cash credit facility of €150m with an option to increase it by €50m. The facilities have a term of five years plus two one-year renewal options up until December 2024. The solid balance-sheet structure was additionally improved with the increase in the equity ratio from 31.1% to 36.4%.

    Group targets for 2018: revenue growth of around 4% and an EBIT margin of around 7%

    In the absence of any material deterioration in global economic and political conditions for our international business, Management Board expects to achieve organic growth of around 4% in group revenue and an EBIT margin of around 7% in 2018.

    CFO Mathias Dähn: “In addition to the favourable global economy and the outlook for the consistently growing packaging and industrial printing industry, our forecast is based on the 10.1% increase in order intake and the further gains in market share achieved in all business fields. A strong basis is also provided by the 8.7% rise in the order backlog to €606.2m and the progress made in the €70m EBIT increase projects by 2021. The incremental growth in the revenue share of service business to 30% and the performance improvement project in security printing should each contribute around €20m and the integrated production network and strategic purchasing each around €15m to earnings growth. At the same time, we will be raising the prices of our entire product range by 3.7% effective 1 April 2018 in response to rising costs. Even so, the targeted growth investments are leaving traces on our cost position. Our guidance for 2018 put us on track to achieving our EBIT margin target of 9% and an organic revenue growth rate of around 4% p.a. by 2021. We would expect to reach the lower edge of our EBIT guidance of between 4% and 9% in the event of more adverse conditions in the global economy and the end markets, particularly as a result of volatile security printing business.”

    In the first quarter of 2018, Koenig & Bauer will be completing the partial external funding of its pension provisions commenced in 2017 and initially planned for a period of five years. The final payment will be in the same amount as all the previous payments made in 2017. At the time of transfer of the claims to the beneficiaries, the reinsurance claims recognised within financial receivables will be netted against pension provisions. This reduction in the balance sheet will additionally improve the equity ratio and will bring it closer to the target of over 45%.

    Figures at a glance 

    The financial statements can be downloaded as a PDF file from here

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