Océ publishes 2nd quarter 2009 results
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July 2, 2009 – Venlo, The Netherlands
Océ reports loss but cash flow and net debt improved
Highlights second quarter:
- Total revenues declined 4.1% to € 676 million
- Normalized operating income - € 15 million
- Net income - € 14 million
- Free cash flow improved to € 16 million
- Net debt € 87 million lower
- Acceleration cost cutting measures
Comments by Rokus van Iperen, Chairman of the Board of Executive Directors:
"Normalized operating income over the second quarter of 2009 was disappointing due to even more challenging market conditions than in the first quarter. Earnings were impacted by the under-utilization of our supply centers. On the other hand our Sales and Service organizations maintained their gross margins.
In the second quarter, revenues in the Construction and Manufacturing sectors continued to decline. Revenues in Government, Health Care, Education and the Utilities sectors weakened. Both developments resulted in lower equipment sales and lower print volumes.
Revenues in document management services and wide format graphics developed positively. Based on our expanding color portfolio, color sales as a percentage of revenues increased to 30%.
Amidst today’s economic turbulence, we believe we have improved our position as our revenue development outperformed the industry average. We have achieved positive cash flow reflecting the focused actions to reduce our balance sheet. Our net debt is € 87 million lower mainly as a result of exchange rate effects.
At the end of the second quarter we had reduced our headcount by some 1,500 FTEs. In view of market developments, we accelerate cost cutting measures. Our 2008-2010 headcount reduction target has been increased from 1,250 to 2,350 FTEs. Our 2009 cost reduction target has been increased from € 80 million to € 124 million.’
Read the full financial report »
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Océ is a leading provider of digital document management technology and services. For more information, visit us at:
www.oceusa.com.
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