Friday, January 28, 2011

OCE Releases Q4 2010 Results

Venlo, the Netherlands, 26 January 2011

Today Océ N.V. published the results for the 4th quarter (2010) and provisional full year of 2010.

Here’s some of the information from that report:

Océ reports improved results Highlights fourth quarter (ended November 30, 2010):

Total revenues + 5% to € 715 million (2009: € 683 million)

Organically, non-recurring revenues + 1%; recurring revenues − 2%

Normalized operating income doubled to € 29 million (2009: € 14 million)

One-off items of € 36 million impacted net income

Phase in of Canon product portfolio completed

Change of fiscal year, effective January 1, 2011

Comments by Rokus van Iperen, Chairman of the Board of Executive Directors:

‘It is encouraging that we have improved our normalized operating income for the third consecutive quarter. Our bottom line was impacted by substantial customary one-off items.

Profitability improved, due to better utilization of our plants and the results of our cost savings program. Customers continued to be cost conscious amidst ongoing economic uncertainty, but revenue development improved versus the trend of previous years.

Certain markets showed clear signs of recovery. Revenues in continuous feed improved, benefiting from printer sales, particularly of the Océ JetStream series. Wide format revenues showed recovery, mainly driven by printer sales in the display graphics markets. Revenues in business services increased marginally, mainly due to growth in North America.

As of the third quarter 2010, we started selling Canon office printers, first in the US, followed shortly thereafter in Europe. Now, we offer Canon products to our customers worldwide.

In the quarter, we successfully participated in the prominent Canon Expo held in New York, Paris and Tokyo. At the Expo in Tokyo, we launched an innovative digital color continuous feed system, the Océ ColorStream 3500. This very high volume inkjet printer was developed at our German technology plant and enables Canon and Océ to serve commercial printing companies wishing to offer both analogue and digital color printing systems. This year too, we will participate in the Canon Expo to be held in Shanghai in May 2011.’

From a portion of the report that talks about “business segments:

Wide Format Printing Systems (WFPS)

Compared to the fourth quarter of 2009 the WFPS revenues showed recovery, mainly driven by non- recurring revenue development of Display Graphic Systems. Recurring revenues were lagging behind.

Revenues in WFPS amounted to € 208 million. Organically, revenues grew by 5%. The share of color increased to 54% (2009: 47%). WFPS introduced the Océ ColorWave 300, a new single footprint all-in- one wide format printer for copying, printing and scanning. Also, customers responded positively to the newly introduced Océ CS2400 color system for the technical documentation market. Among commercial printshops producing billboards and displays for retailers, amongst others, the new wide format

graphics printer, the Océ Arizona 550 XT received a lot of attention, specifically for the size of its flatbed and its productivity.

Non-recurring revenues amounted to € 91 million. Organically, revenues increased by 21%. Growth was mainly driven by both North America and Asia.

Recurring revenues amounted to € 117 million. Organically, recurring revenues declined by 5% mainly as a result of decreasing click volumes.

Normalized operating income increased to € 15 million (2009: € 10 million) reflecting improved business volumes.

Océ Business Services (OBS)

Revenues in OBS amounted to € 121 million. Organically, revenues increased by 1%. Revenue growth was driven by the North America region, despite lower print volumes. In Europe, OBS implemented a Pan-European organization, supporting Océ operating companies to improve their OBS practice and performance. Normalized operating income improved to € 7 million (2009: € 5 million), due to higher gross margins, tight operational expense management and mix improvement.

Outlook (Overall, for all of OCE)

Main priority for Océ in 2011 is to continue to improve the business by focusing on revenue, profit and cash. Océ will grow the business by strengthening its position in mature markets, expanding in growth markets like graphic arts and document services and boosting cross selling with Canon. Also, jointly with Canon, Océ will invest in regional growth markets like China and India. In 2011, Océ will expand its product portfolio, amongst others by introducing new printing systems, jointly developed with Canon. Finally, the company will continue to prepare for the integration with Canon.

If you want to read the full Press Release, then go to:

and then click on the pdf file that contains the Press Release

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