Xeikon blames 'Drupa effect' for €10m drop in first half revenues
By Pamela Mardle Friday, 24 August 2012
Xeikon has cited the 'Drupa effect' for a €1.1m (£874,000) year-on-year decline in net profit and a €1.9m fall in pre-tax profit during the six months to June 2012.
Total revenues fell €10.1m, from €67.8m in the same period last year, to €57.7m but net debt fell to €28.1m from €29m in June 2011.
The manufacturer reported a 22% drop in equipment sales, citing a shift in purchasing levels to the six months following Drupa, which it said was in line with previous years during which the international trade show had been held.
Xeikon said it recorded "substantial orders" at Drupa, where it launched toner-based press Quantum, and beat its sales target by 250%. It expects the effects of those to be realised in the sales results of the second half of 2012.
The company said in a statement: "The management expects sales in the second half of the year to be higher than in the second half of 2011, in view of the stabilisation of recurring sales and an order book well-filled with orders for equipment placed at Drupa."
While currency translation differences contributed a €500,000 rise to shareholder’s equity, the company continued to view the fluctuation of the US dollar, which constitutes 25% of Xeikon’s sales, as a risk factor.
A number of the digital press manufacturer’s North American customers experienced sales losses, resulting in a 10% decrease amongst consumables.
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