Océ revenues hit by construction market decline and Japanese earthquake disaster

Dutch digital manufacturer Océ has blamed the decline in construction markets coupled with supply chain problems caused by the Japanese earthquake for lower sales in the second quarter of 2011.

Océ's total revenues declined by 4% to €626m (£552m) down €50m on the same period last year, while the group's non-recurring revenues dropping 12% to €162m. Recurring revenues at Océ dipped 1% to €464m.

The manufacturer slipped to an operating loss of €11.2m for the quarter (2010: €12.3m profit) while it's pre-tax loss worsened from €9.7m to €13m.

Océ's Wide Format Printing Systems (WFPS) division was hit by the decline in construction market in both the USA and Europe; however, sales were still up 2% at €186m.

The manufacturer reported positive interest in its Arizona 360 GT and XT flatbed printing system launched at Fespa Digital in May, with deliveries commencing this quarter.

Operating income within the division came in at €5m, which was down from €13m in 2010.

The company's Digital Document Systems (DDS) operation saw sales drop during the three month period between April and June.

Océ cited the timing of certain projects for a drop in sales of its continuous feed printers while the Japanese earthquake disaster impacted the group's supply chain.

Revenues amounted to €327m, down 9% year-on-year, of which non-recurring revenues suffered a 23% drop to €89m.

Concerning its acquisition by Canon, the company said that its integration programme was still underway with the company's Japanese and Swiss operations already combined.

Rokus van Iperen, chairman of the executive board Océ, said the manufacturer will ramp up production of its newly-launched continuous and wide-format products while intensifying its marketing and sales efforts.

"We have strongly intensified our marketing and sales efforts to increase revenues. And we have put a stringent cost control program in place to improve the bottom line," he added.