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KBA warned that activity in the web sector remained critically low as it announced a further 700 job cuts across its Frankenthal, Wurzburg and Trennfeld plants.

The company said sales for the five months to 1 June were short of its targets, after shipments of web presses were delayed by a six-week strike at KBA's Frankenthal plant, which has yet to be fully resolved.

Despite missing its targets, KBA recorded a 21% uplift in orders to €600m ($871m) and 27% in sales, to over €420m, backed by growth in its sheetfed and special presses divisions. The manufacturer's order backlog was up 40% at €617m. However, it warned "global demand [for web presses remains] well below pre-crisis levels".

As a result, the group intends to reduce staff at its Frankenthal, Wrzburg and Trennfeld factories, which employed 6,377 staff at the end of May this year but will reduce by 700 to "well below 6,000" by the end of 2013.

The company said it would maintain its guidance for the year of a single digit percentage increase in sales on last year's €1.18bn and that, given its pre-tax profit for 2010, it would pay a dividend of €0.30 a share from its net profit of €12.5m - the first for two years.

Chief executive Helge Hansen added that the company would continue to explore more niche markets.