Oce Reports Results for First Nine Months, Machine Sales Down
Press release from the issuing company
During the nine months revenues increased by 3% to euro 2,376 million.
This increase was attributable in full to exchange rate effects. Compared to last year, sales of machines were lower in all Strategic Business Units; this is a consequence of the sharp decline in economic growth, which is causing customers to postpone their investment decisions. Revenues from Facility Services, Software & Services were higher than in the previous year.
Against the background of this deteriorating economic climate, operational expenses were kept well under control whilst stocks and debtors were reduced. Additional cost savings and working capital reductions will be implemented. Net income decreased by 27% compared to the 2000 financial year.
Revenues in Wide Format Printing Systems increased during the nine months by 4% to euro 666 million. Of this, 1% was autonomous growth.
Revenues from software and service revealed a healthy rate of growth.
Revenues in Document Printing Systems remained constant at euro 1,123 million. The autonomous decrease in revenues amounted to 2%. Facility Services booked strong autonomous growth (+23%).
In Production Printing Systems revenues increased by 7% to euro 587 million.
Autonomous growth amounted to 2%. Exchange rate effects had a positive influence of 3% and acquisitions contributed 2%. Revenues from service and software developed favourably during the first nine months.
The gross margin decreased to 40.4% of total revenues (2000: 42.2%). This decrease was mainly due to product mix effects, particularly caused by the increasing share of Facility Services in total revenues, volume effects in manufacturing capacity and price competition.
Operating income decreased by 15% to euro 162.7 million.
Operating expenses increased by 2% compared to 2000.
Financing expenses (net) increased by 19% to euro 52.4 million.
Net income decreased by 27% to euro 74.4 million.
Net income attributable to holders of ordinary shares decreased by 28% to euro 71.7 million.
Cash flow (net income plus depreciation) amounted to euro 216 million (2000: euro 247 million).
Based on the weighted average number of ordinary shares outstanding of euro 0.50 nominal each, net income decreased by 29% to euro 0.84 and cash flow by 14% to euro 2.49.
Oce results third quarter 2001
* Revenues euro 791.9 million (+1%)
* Operating income euro 48.5 million (-18%)
* Net income euro 21.2 million (-29%)
Continued slowdown in machine sales
Growth in software and service
In Wide Format Printing Systems (WFPS) revenues rose by 2% to euro 225 million.
The autonomous decrease in revenues was 1%. This decrease is due to a slowdown in the sales of machines. Nevertheless the market share remained unchanged.
In Document Printing Systems (DPS) revenues decreased by 2% and stood at euro 370 million. The autonomous decrease amounted to 5%. Increases in revenues from Facility Services, software and other services were not sufficient to offset the decline in machine sales. The start-up of production of the newly launched machines, the high volume DPS400 and the CPS700 colour system, has progressed well. Demand for both these products clearly exists, but the hesitancy to invest also seems to be adversely affecting the DPS400.
Production Printing Systems (PPS) enjoyed a good quarter. Revenues increased by 7% to euro 197 million. The autonomous increase in revenues amounted to 3.5%. During the quarter a substantial order was booked and delivered in the United States. Despite this, no improvement has been achieved in the order portfolio due to the continuing, poor investment climate.
Operating income amounted to euro 48.5 million, which was 18% lower than in 2000 (euro 59 million). This was chiefly due to the decline in the operating margin, which fell from 41.5% to 39.5%. The main factors that led to this decrease were: reduced volumes in manufacturing, price competition and a changed product mix. The latter effect is attributable in part to the growing importance of Facility Services in total revenues. Operating expenses decreased by 1% compared to 2000. Net income attributable to holders of ordinary shares decreased by 30% to euro 20.3 million; higher financing expenses and an increase in the effective tax rate contributed to this decrease.
Cash flow decreased down to euro 69.3 million (2000: euro 77.8 million). Based on the weighted average number of ordinary shares outstanding of euro 0.50 nominal each, net income decreased by 30% to euro 0.24. Cash flow per share decreased by 11% to euro 0.80.
To cover existing option commitments Oce bought in two million of its own shares during the third quarter.
Certainly in view of the recent tragic events in the United States it is not possible at the moment to make a reliable estimate of the results for the full financial year.
Interim dividend 2001
In respect of the 2001 financial year an unchanged interim dividend of euro 0.15 will be distributed. The interim dividend will be made available entirely in cash and will become available for payment as from 19 October 2001.
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