Oce Report Reveals Sharp Decline in Revenues
Results 2nd quarter/six months 2003
» Revenues decline by 15.7% on 2002 (autonomous: -7.4%)
» Net income down by 25.4% to euro 40.1 million
» Operating expenses and working capital reduced further
» Free cash flow euro 44.4 million
» Additional cost saving measures initiated
Period 1st December 2002 till 31 May 2003
Océ results second quarter/first six months 2003 *)
In million euro...............2nd quarter 2003..........1st six months 2003
Total revenues.................692.1 (- 16.2%)............1,369.2 (- 15.7%)
EBITDA.............................78.0 (- 26.1%)...............164.3 (- 21.5%)
EBIT 34.3.................................(- 39.7%).................75.8 (- 32.1%)
Net income.......................18.9 (- 32.1%).................40.1 (- 25.4%)
In euro
Net income per share.........0.22 (- 32.6%).................0.46 (- 25.6%)
» Revenues decline by 15.7% on 2002 (autonomous: -7.4%)
» Net income down by 25.4% to euro 40.1 million
» Operating expenses and working capital reduced further
» Free cash flow euro 44.4 million
» Additional cost saving measures initiated
» IFRS method introduced for pensions
* The figures stated in this report are unaudited. The report has been prepared on the basis of Dutch GAAP; as compared to the Annual Financial Statements for 2002 changes have taken place in the accounting principles (see the text in the overview "Changes in shareholders' equity" on page 6).
• Results by Strategic Business Unit
» Digital Document Systems (DDS) revenues amounted to € 945 million. Revenues decreased by 15.2%, of which 7.2% is autonomous. The decrease in machine sales and in revenues from software and professional services (non-recurring) amounted to 28%. Autonomous revenues from service, consumables and interest lease income (recurring) were 2% lower. This decrease is the result of the downward trend in machines sales over the past two years. Facility Services booked an autonomous increase of 2.1% in revenues.
The operating income of DDS amounted to € 49.5 million (2002: € 64.0 million). The new products have been very well received by the market, customer trials have been successfully completed and the products are now fully available in the market.
» Wide Format Printing Systems (WFPS) revenues amounted to € 424 million. This represented a decrease of 17.0% from 2002. On an autonomous basis the decrease amounted to 7.9%. Sales from printing systems (hardware, software and professional services) decreased by 22% (on an autonomous basis by 13%). The (recurring) revenues related to machine sales decreased on an autonomous basis by 6%.
Operating income in WFPS amounted to € 26.2 million (2002: € 47.7 million). The Oce TCS400, the color printer for the TDS market, was very well received by the market.
• Prospects for the Balance of 2003
Economic circumstances are not showing any improvement and the investment climate remains poor. In addition, the weak dollar will impact on revenues and income for the remainder of the year.
In the second half of the year costs will be reduced further.
In light of the uncertain economic situation it is not possible to make a pronouncement about the results for the full 2003 year.
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http://www.oce.com/en/Investor
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