Inkjet & Digital Printing

Xeikon NV Trading update Q3 2012: Strong sales growth in third quarter

Monday 12. November 2012 - Partly due to a successful DRUPA fair, sales in the third quarter were 19% up on the same period last year. However, at EUR 88.3 million sales for the period January to September were 4.8% lower than in 2011 (EUR 92.8 million).

The main developments in sales are as follows:
By segment: Digital Printing Solutions sales during the third quarter rose 25% compared with the third quarter of 2011. Prepress Solutions sales in the same period were 1.6% higher than last year. Over the first three quarters, Digital Printing Solutions generated sales at the same level as in 2011, whereas Prepress Solutions sales over that period were 16.4% lower.
By activity/product: thanks to the successful participation in the graphics trade fair DRUPA, turnover from equipment sales during the third quarter of 2012 was significantly higher than last year (+ 40%). Turnover from consumables and service activities in the third quarter was up 6.4% on last year. This increase is mainly due to growth in the Labels & Packaging segment. Over the period January to September, turnover from equipment sales was 5.1% lower than in the same period last year; recurring income from consumables and service activities was 4.8% down.
By region: in Europe, sales rose by 3.9% over the first three quarters, but in America and Asia they were 21% and 2.2% lower respectively than in the same period in 2011.
Prospects
Based on the state of the order book, the management expects sales in the fourth quarter of 2012 to be slightly higher than those for the fourth quarter of 2011.
Purchase of treasury shares
The management has decided to make use of the authority granted to it to purchase treasury shares. Under this authority, the management is empowered to purchase treasury shares up to the maximum quantity that may be vested in the company by virtue of the law 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. In its quarterly trading updates, the company will report periodically on the number of treasury shares purchased and the average acquisition price. As at the end of September 2012, the company had purchased a total of 3,104,954 Xeikon shares at an average price of EUR 2.67. This represents 10.81% of the total number of shares outstanding.