Brief: Koenig & Bauer Adopts Cost-Cutting Programme

Koenig & Bauer AG

29/09/2020 06:45

Sept 29(Reuters) - KOENIG & BAUER  SKBG.DE :
    * SAID ON MONDAY IT HAS DEVELOPED AND EXPANDED THE
PERFORMANCE
2024 EFFICIENCY PROGRAMME
    * SEES TO INCREASINGLY ACHIEVE ANNUAL COST SAVINGS OF OVER
EUR 100
MILLION UNTIL 2024
    * CORRESPONDING ONE-OFF COSTS IN THE MID DOUBLE-DIGIT
MILLION
RANGE WILL BE RECOGNISED AS EXPENSES VIA A PROVISION IN THE 2020
FY GROUP INCOME STATEMENT
    * SAYS BETWEEN 700 AND 900 JOBS WILL BE AFFECTED IN THE
SHORT AND
MEDIUM-TERM FROM THE MEASURES ADOPTED
    * SHORT AND MEDIUM-TERM MEASURES WILL TAKE EFFECT FROM 2021
TO
2024
    * EXPECTS ONLY MODERATE REVENUE GROWTH AND NO SHORT-TERM
RETURN TO
PRE-CRISIS REVENUE LEVEL IN THE NEXT FEW YEARS
    * SEES A NEGATIVE IMPACT FROM COVID-19 PANDEMIC ON BUSINESS
PERFORMANCE IN Q3 AND Q4 OF 2020
    * SAYS INTENDED INTRODUCTION OF A NEW INTERNAL GUIDELINE FOR
REVENUE ACCOUNTING IN THE SHEETFED SEGMENT IN 2020 WILL CAUSE A
ONE-OFF BALANCE SHEET SHIFT OF EUR 40-60 MILLION REVENUE AND EUR
9-12 MILLION EBIT TO 2021
    * SAYS IT SHOULD ACHIEVE A REVENUE LEVEL OF AROUND EUR 1.3
BILLION
AFTER COMPLETION OF THE PROGRAMME
    * STILL AIMS FOR RETURN ON SALES OF AT LEAST 7% IN
MEDIUM-TERM AND
REDUCTION IN WORKING CAPITAL REQUIREMENTS TO AN AVERAGE OF 25%
OF ANNUAL REVENUE

    
 Source text for Eikon:  urn:newsml:reuters.com:*:nPexL6j2qa
    
 Further company coverage:  SKBG.DE  
   


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