Ad-hoc | 22 June 2006 11:00

Koenig & Bauer AG: Upbeat prognosis reaffirmed for 2006

Ad hoc announcement transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— Speaking to a packed hall at the 81st AGM convened by German press manufacturer Koenig & Bauer AG (KBA), group president and CEO Albrecht Bolza-Schünemann reaffirmed his upbeat prognosis for 2006 despite the fact that in the first five months demand had been relatively modest. Sales topped the prior-year figure by more than €40m, and though shipping schedules meant they once again fell short of the annual target and thus impaired group earnings, the situation at mid-year will be better than at the end of the first quarter. While the volume of new orders failed to equal the previous year’s exceptionally high figure, and bookings for special security and gravure presses also eased, sales of sheetfed and commercial presses picked up in the second quarter. A €1bn-plus backlog of orders will keep KBA’s web press production plants busy until well into the first quarter of 2007, while the sheetfed division has sufficient orders to secure production until almost the end of the current year. In view of the big increase in sales and a more earnings-friendly shipping schedule in the second half-year, Albrecht Bolza-Schünemann saw no cause to amend his March prognosis of a single-digit increase in group sales and a higher pre-tax profit than in 2005 (€25.8m). However, he pointed out that the recent tariff agreements in the German metalworking and electrical industries will hit group earnings to the tune of several million euros. He added that the risks inherent in currency fluctuations between the euro and the US dollar, and movements in the prices of energy and raw materials, mean that it would be premature at this point in time to make a detailed prognosis with regard to sales and earnings in 2006. He revealed that the Federal Cartel Office had recently approved the acquisition of Stuttgart-based metal-decorating specialist LTG-Mailänder by KBA subsidiary Bauer+Kunzi, which is located in the same area and is already a major player in this lucrative niche market. By expanding its metal-decorating activities into a much bigger operation with a payroll of over 300 and sales in excess of €90m KBA is aiming to boost its global market share and gain potentially higher returns. (c)DGAP 22.06.2006 ————————————————————————— Language: English Issuer: KOENIG & BAUER AG Friedrich-Koenig Straße 4 97080 Würzburg Deutschland Phone: +49 (0)931 909-4835 Fax: +49 (0)931 909-6015 email: bernd.heusinger@kba-print.de WWW: www.kba-print.de ISIN: DE0007193500 WKN: 719350 indices: SDAX Listed: Amtlicher Markt in Frankfurt (Prime Standard), München; Freiverkehr in Berlin-Bremen, Düsseldorf, Hamburg, Stuttgart End of News DGAP News-Service —————————————————————————