Sunday, January 17, 2010

Ouch! .... OCE reported horrible Q4 2009 results ....

The other day, OCE released its results for Q4 2009 and for its fiscal year 2009.

You can access the complete report by visiting this web-address:

Drawn from OCE's Q4 report:

OCE REPORTS NET LOSS OF € 23 million in the fourth quarter.

Action program on track

Highlights fourth quarter:
• Market development continued to affect printing industry strongly
• Revenues € 683 million (-11% organically)
• Normalized operating income € 16 million
• Restructuring costs € 27 million
• Net loss € 23 million

Highlights full year:
• Free cash flow € 82 million
• Cost-cutting measures delivered results (€ 154 million)

Comments by Rokus van Iperen, Chairman of the Board of Executive Directors:
‘Our revenues continued to decline in the fourth quarter as customers remained uncertain about the economic situation and sustained their efforts to reduce costs. Towards the end of the year, we saw some bottoming out in the sales of continuous feed systems in the United States.

We are on track with the implementation of our action program related to job reductions and saving out-of-pocket expenses. Although we have spent a significant amount on restructuring, we improved our cash flow by further reducing inventories and trade receivables. Our net debt developed positively for the third consecutive quarter.

In 2010, we anticipate that the markets will remain challenging. In order to further strengthen our competitive position and drive sales under difficult market conditions, we will continue to introduce innovative products.

The fourth quarter was marked by the important announcement of Canon’s intended recommended offer for OcĂ©, which is aimed at creating the global leader in the consolidating printing industry. In the meantime, the transaction process is on track and all relevant anti-trust approvals have been obtained.’

OCE's report, as always, furnishes information by business segment, and here's what OCE's report said about.....

Wide Format Printing Systems (WFPS)

The construction and manufacturing market sectors declined.
The climate in the display graphics market deteriorated further.

Revenues in WFPS amounted to € 187 million.
Organically, revenues declined by 17%. The share
of color increased to 47% (2008: 41%).

Non-recurring revenues amounted to € 71 million.
Organically, revenues declined by 21%.

Recurring revenues amounted to € 116 million.
Organically, recurring revenues declined by 14%.
The main driver was the decline in print volumes in
market sectors served by Technical Document
Systems and Imaging Supplies.

Imaging Supplies revenue declined organically by
22% mainly due to lower print volumes.

Normalized operating income amounted to € 12
million (2008: € 21 million) and was impacted by
the strong decline in market demand.

For those of you who were wondering about this, some of the comments in OCE's Q4 report would lead one to conclude that Canon's acquisition of OCE is expected to proceed.

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