Business News
Punch Graphix nv: Trading update Q1 2009 – effects of crisis felt
Monday 18. May 2009 - Punch Graphix nv (Punch Graphix) experienced an 8.1% fall in its sales during the first quarter of 2009 compared with the same period last year. The group has introduced a cost savings plan which will reduce overall costs by at least 10 million euros per year. However, the effects of these measures will only be apparent in the figures from the second quarter of 2010 onwards.
Change in sales
The group experienced an 8.1% fall in its sales during the first quarter compared with the same period last year. The main developments were as follows:
Both Digital Printing Solutions (-8.7%) and Prepress Solutions (-6.7%) recorded a fall in sales.
An analysis by activity and/or product shows that sales from service activities and other activities fell by 3.4%, equipment sales fell by 5.8% and sales of consumables fell by 14.4%. The fall in sales generated by consumables is entirely due to the performance in January 2009. The sales generated in February and March 2009 for consumables were higher than in 2008. Equipment sales have come under pressure chiefly as a result of financing problems experienced by customers due to the global credit crisis. This problem has arisen mainly with the more expensive machines.
In geographical terms, sales in Europe (-3.4%) have held ground fairly well. The crisis has been particularly acute in Asia (-51.7%) and America (-18.0%).
Prospects
In the current economic climate, the groups ability to forecast is insufficient to release concrete targets on the market. However, the group expects both sales and the net profit in 2009 to fall substantially compared with 2008. The effects of the cost-saving measures which have been taken will only be apparent in the figures from the second quarter of 2010 onwards.
General Meeting of Shareholders
The General Meeting of Shareholders will be held in the companys office at Brieversstraat 70, 4529 GZ Eede, the Netherlands, on Tuesday 19 May 2009 at 11:00 CET.
Purchase of treasury shares
The board has resolved to avail itself of the authority granted it to purchase treasury shares. Under this authority, which was extended at the Extraordinary General Meeting on 13 February 2009, the directors are empowered to purchase treasury shares up to the maximum quantity that may be vested in the company by virtue of statute and the articles of association at the time of acquisition, at a price between their par value and 110% of the stock-market price at the time of acquisition, The company will periodically report on the number of treasury shares purchased and the average acquisition price in its quarterly trading updates. At the end of April 2009 the company had purchased a total of 2,311,695 treasury shares at an average price of 2.53 euros, representing 8.05% of the total number of shares outstanding.