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MAN Roland reports solid earnings, as Allianz & MAN AG advance their partnership

Tuesday, May 23, 2006

Press release from the issuing company

Westmont, Illinois - Building on the momentum of a record fiscal 2005, MAN Roland Druckmaschinen AG increased its operating results by US$37.9 million (EUR 30 million) to US$17.6 million (EUR 14 million) during the first quarter of this year over the same period in 2005. The gains were announced as MAN AG and Allianz Capital Partners finalized their agreement on the sale of MAN Roland Druckmaschinen AG to a joint investment company they are forming. "MAN Roland continues to build on its strengths, and that's good news for North American printers," says Yves Rogivue, CEO of MAN Roland Inc. "Our continued growth means we can extend our lead in R&D and enhance our ability to provide added value to our customers. That will help them compete more effectively in the media marketplace." Categorizing the gains by press sector, MAN Roland reported a US$32.8 million (EUR 26 million) boost in its sheetfed results to the break-even point. The rise was prompted by higher sales, higher productivity and reduced costs. Higher sales and greater efficiency also led to gains in the web press sector, which registered a US$5 million (EUR 4 million) rise during the quarter to US$17.6 million (EUR 14 million). "Commercial web printers and newspaper facilities are actively seeking new ways to raise revenue and expand their profits," says Vincent Lapinski, COO of Web Operations, MAN Roland Inc. "Our applied innovations deliver those opportunities. That's why even though we're coming off a record year for 2005, our sales and orders continue to climb. We're providing precisely what our customers need to build their businesses." 47% Rise in Press Orders Overall, MAN Roland press orders increased by 47% to US$720.4 million (EUR 570 million) compared to US$489.1 million (EUR 387 million) in the previous year. The figures did not include a record order by News International. Web press order volume expanded by 83% to US$438.5 million (EUR 347 million), in contrast to 2005's US$238.8 (EUR 189 million) total, which again does not reflect the News International deal. Sheetfed order volume also increased, up 13% to US$281.8million (EUR 223 million), compared to US$250 million (EUR 198 million) in 2005. Meanwhile, order backlog sales for web presses rose by 46% to US$276.7 million (EUR 219 million), up from US$189.5 million (EUR 150 million) in 2005. And sheetfed order backlog sales increased by 29% to US$242.6 million (EUR 192 million), compared to US$188.3 million (EUR 149 million) the previous year. MAN Roland's sales performance at IPEX in April contributed to the gains. Just under 400 sheetfed printing units were sold in conjunction with the show and 13 orders for newspaper and commercial web presses were written, tallying up to a total order volume of well over US$ 252.7 million (EUR 200 million). Toward Independence More details on MAN Roland's move toward becoming an independent entity were also announced, as MAN AG and Allianz Capital Partners (ACP) documented their partnership. The MAN Roland Group was valued at over US$1 billion (EUR 856 million) as a going concern. MAN will hold 35% and ACP 65% of the investment company that is being created. "Growing revenue, greater efficiency and the independence to focus on our core capabilities will help MAN Roland be even more responsive to our customers in the months and years ahead," Rogivue says. "Our trends are moving in their favor."

 

 

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