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News Release from: Kasto
Edited by the Manufacturingtalk Editorial
Team on 25 April 2005
Sawing sales during 2005 improve
internationally
In the second half of the year 2004, after a weak start the outlook for Kasto improved considerably, while enquiries received at European and US exhibitions showed a positive trend.
In the second half of the year 2004, after a weak start the outlook for Kasto improved considerably, while enquiries received at European and US exhibitions showed a positive trend In the second half of the year 2004, after a weak start in the beginning of the year, the outlook for Kasto has improved considerably, especially due to increased international inquiries
This article was originally published on Manufacturingtalk on 23 May 2001 at 8.00am (UK)
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Also encouraging was the trend from exhibitions in the second half of 2004.
Positive tendencies with the appropriate after-show-sales have been observed during the AMB in Stuttgart, Germany, the BIMU in Milan, Italy, the Aluminium in Essen, Germany, the IMTS in Chicago, USA, the Euroblech in Hanover, Germany, the Prodex in Basel, Switzerland and the Euromold in Frankfurt, Germany.
The new Kasto products - introduced in the fall of 2004 - such as KASTOvariospeed, the new small block bandsaw KASTOvertical and also the new KASTOtwin A 5 were well received by our customers.
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But there is still a reluctance to invest in certain areas.
An exception is the steel distribution industry.
This industry invests increasingly in high-performance saws and storage systems due to the positive steel price developments.
As of fall 2004, a distinct shift of received orders in favor of sawing machines became evident, but both areas have seen an increase compared to the same period of the previous year.
Inquiries for storage systems are positive in total but different from country to country.
But in the last month of 2004 and now in 2005, larger orders for storage systems have been booked.
For example, a large order from a leading Danish steel distributor for two big Honeycomb Storage Systems - one for bar stock and one combined bar stock/sheet metal system with automatic sheet metal commissioning as well as an additional software to manage and organise all external storage areas could be secured.
With the order backlog of the last year and the incoming orders in 2005, sales is secured for more than half a year.
But there is still an extreme cutthroat competition.
Due to the underused capacities, some competitors work with two digit discounts or price differences of up to 30 %.
Kasto strives to enforce the higher prices with much better technology and is therefore with high-tech solutions or power cutting a very interesting partner.
Moreover, due to higher material prices in the beginning of 2005, prices had to be increased also.
Sales in 2004 was EUR 61,5 million.
Due to inventory increase for orders in 2005 and due to the production of our own high-rise storage system with sawing centre, operation performance increased.
Fortunately, we have achieved a positive outcome for 2004.
After the weaker year 2004 with EUR 61,5 million, the goal for sales in 2005 is more than EUR 70 million; a number that is absolutely achievable based on the development so far, the number of orders already in house and the still good inquiries worldwide.
But we cannot hide the risk that is involved when exporting into Dollar countries due to the bad Euro-Dollar ratio and the problems with steel prices.
But Kasto will make every possible attempt to influence the factors that Kasto is able to address to secure the future of the company and to expand the company, said Kasto's general manager, Armin Stolzer.
* Strategy and planning for the future - one of the most important tasks of our company is to take every necessary step to secure the future and to preserve jobs.
Here, it all depends on offering cost-saving solutions and products that benefit the customer to ensure that customers buy sawing and storing technology 'made by Kasto'.
Kasto strives to convince the customers in steel and metal distribution, in logistics companies, in machine manufacturing and metal processing etc that the investment in modern Kasto-sawing and storing technology brings in return substantial cost savings and a much better competitive position.
Kasto counts with the entire product range on: * Innovation, especially in the area of software.
* Competence in consulting.
* Reliability in service and deliveries.
* Continuous development of machines and systems.
That is, consistent, long-term politics that are based on partnership without any compromises for the benefit of the Kasto customer.
Kasto innovations generate a Kasto-own economy.
Kasto believes in the idea that one can only be successful when the customers are successful in their markets.
Therefore, user potentials and rationalisation effects of the new machines, which were designed in individual Kasto design teams, have been discussed with important Kasto users.
Kasto's specialization in universal saws, production saws and bar storage technology as well as computer software keeps - due to employee structure and mix of development and order processing - a strong focus on each application.
Besides the new products shown in 2004 - KASTOvertical, KASTOvariospeed C 14, KASTOtwin A 5, the fully automatic stacking cradle system with cutting optimization software and the fully automatic sheet metal commissioning - the year 2005 brought innovations in mitre cutting, new machine controls and the highlight: The new logistics center with a Honeycomb Storage System for bar stock, sheet metal pallets and crates as well as a sawing cell with a KASTOvariospeed Carbide Circular Saw with robotic sorting.
Aside from the product innovations, in the beginning of 2004 KASTO started a project to improve the in-house processes to increase performance, communication, speed and productivity.
The project 'Kasto 2005' comprises all activities in sales, service, order processing, manufacturing and assembly.
The sales department was restructured and each sales partner or country was assigned a team of sales engineers who are able to handle the products sawing and storing competently.
The four teams are responsible for acquisition, order processing, installation and commissioning.
The service, which was divided into three groups, was merged into one single group to improve coordination and quick reaction.
The new logistics center is also part of this project and serves as the hub for the in-house material supply and the modernization and rationalization of the material flow in manufacturing, assembly and spare parts logistics.
A very important part of Kasto are the employees that have been working for the company for many years.
With an average employee age of 39, the period of employment averages 15 years as of the beginning of 2005.
Kasto offers continual professional education for young employees.
Moreover, Kasto has an excellent apprentice share of 12%.
Unfortunately, Kasto had to down-size due to the difficult market conditions in 2003 and the first six months of 2004.
Besides other measures, Kasto was forced to work short hours and had to reduce personnel down to approximately 500.
Fortunately, this difficult time is since mid of 2004 a part of the past.
Considering everything, the company politics are based on the 160 year tradition of a medium-size business, where 'spirit and culture' play a huge role in the success of the company.
More than 110.000 saws delivered and 1000 bar storage systems and sawing centers speak for themselves.
The Kasto-economy is based on innovations, as you will see during the Open House, on the fact that the name Kasto is widely known, on performance and the durability of Kasto-products.
This is confirmed by the fact that Kasto is the leader in power cutting and storage logistics.
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