Domino performance in line despite slow down in western Europe sales

Domino Printing Sciences has said that results following the first 10 months of its financial year are "in line with expectations" despite demand for new equipment from western Europe and North America "subdued" since August.

However, the markets reacted negatively to the news: Domino's share price fell more than 15% on the news since the 15 September to the time of writing (20 September).

The results for the period from 1 May 2011 to 15 September maintain the Cambridge-based company's performance that saw it hit expectations during its half-year numbers published in June.

At the end of August, Domino said sales were 4% ahead on the corresponding period last year.

However, while sales in Asia, Middle East, South America and parts of Europe remained positive, new equipment revenues in Western Europe and North America were slowing down.

Speaking to PrintWeek, Nigel Bond, managing director of Domino Printing Sciences, said while developing countries were performing, lack of consumer confidence in the Eurozone and the US has a detrimental effect on sales.

"It is difficult to say if this will prove to be a post summer malaise or something longer term. In 2008 the indicators were a lot clearer, which is not the case now," he added.

The company said it expected the performance in these regions to remain subdued for the rest of the financial year that concludes on 31 October.

Elsewhere, sales of consumables and spares across the group grew in line with the company's global equipment install base.

Looking ahead, Peter Byrom, chairman of Domino added: "We are restricting incremental costs until the situation becomes clearer.  The board remains confident about our competitive position and in the long term prospects for the group."