Europe hits Punch Graphix sales

Punch Graphix, the parent company of both Xeikon and basysPrint, has seen its sales for the third quarter of 2011 fall by 20.6 percent compared with the same period last year, with European sales falling by nearly €10 million.
 
Overall sales declined from €33.8 million to around €26.8 million, with each segment and sales activity recording a decline.
 
Digital Printing Solutions sales underwent a 5.5 percent drop in the third quarter from €20.8 million to €19.6 million. Prepress Solutions sales were down 44 percent compared with the third quarter of 2010, from €13 million to €7.2 million.
 
Equipment sales fell from €13.3 million to €10.1 million, and consumables and service took a dive from €20.5 million to €16.7 million.
 
Punch Graphix said equipment sales in the Prepress Solutions segment have fallen considerably, due firstly to increased competition and pressure on margins and secondly due to the current economic developments.
 
By region, sales declines during the third quarter came solely from Punch Graphix’s European operations, with the Americas and Asia both growing in excess of one million euros a piece. In Europe, sales fell from €21.3 million to €12 million.
 
The third quarter included the Labelexpo Europe 2011 exhibition, held in Brussels, Belgium, which Punch Graphix said saw 50 percent more visitors came to its stand than the previous edition, resulting in good sales. It added that Labelexpo Europe 2011 was a good opportunity for Punch Graphix to further raise its profile with its Xeikon 3000 Series of digital presses.
 
A Xeikon 3050 digital press (pictured) was demonstrated within the inaugural Package Printing Zone at a Labelexpo event, while Xeikon was also a key presenter in the Package Printing Zone.
 
For the fourth quarter, Punch Graphix said it is expecting sales to be in line with the same period in 2010, based on the size of the order book it has. In addition, the EBITDA margin for 2011 is expected to be in line with that reported for 2010.