Xeikon provides trading update that shows strength in digital printing and market in the Americas

By segment, the company’s digital printing solutions business unit provided the basis for the stable overall sales result as that segment recorded 12 percent growth in the first quarter up to nearly €22.8 million, compared to pre-press solutions, which declined by 30 percent from nearly €7 million to just under €4.9 million. This resulted in consolidated sales up one percent.

By activity/product, turnover from equipment sales was up 4.7 percent, while recurring income from consumables fell marginally by 0.7 percent.

Xeikon said that due to the continued growth in the labels and packaging segment, turnover from equipment sales in its digital printing solutions business unit has risen sharply. By contrast, in pre-press solutions, turnover from equipment sales has dropped back in line with the market trend for offset.

The slight overall decrease in recurring income is the result of stable recurring income from the digital printing solutions side and a further decrease in recurring income from pre-press solutions.

In Europe sales fell by 17.7 percent during the first quarter, whereas in Asia and the Americas sales rose by 26.1 percent and 35.5 percent to €3.5 million and €10 million respectively.

Looking ahead, Xeikon said the previously announced interested by an unnamed party in the takeover of the company has not made substantial advances, and that talks are continuing. There is currently no clear information regarding the terms or conditions of any transaction, it said.

Xeikon added that it would not be laying down any financial objectives for the future within the Q1 trading update.