Adverse economic conditions and foreign exchange rate effects again impacted our markets in the second quarter and therefore affected our results.
Océ’s revenues decreased organically in the second quarter by 2.3% [excluding fax by –1.7%]. This decrease was mainly caused by a decline in non-recurring revenues, whilst recurring revenues, excluding fax, remained virtually the same on an organic basis.
Customers of the Strategic Business Unit [SBU] DDS postponed bigger investments in continuous feed systems, due in part to developments in the financial sector. In the office market and the printroom market DDS grew thanks to the success of the Océ VarioPrint 6000 series, the color printers of Konica Minolta and the strengthening of our sales organization in Europe.
Also in the present economic situation the SBU OBS again achieved an organic increase in revenues.
The slowdown in the construction sector continued, with the result that the SBU WFPS sold fewer printers in this market. In the graphics market WFPS increased its revenues thanks to sales of the Océ Arizona 250 GT via its own organization and via Fujifilm.
The normalized operating income amounted to Euro 20.2 million. The decrease as compared to 2007 is principally attributable to lower revenues and exchange rate effects. Océ is implementing a savings program of Euro 80 million, of which Euro 20 million has meanwhile been realized in the first half of 2008. Savings of Euro 60 million will be achieved in the second half of this year. In response to the economic situation and following a careful analysis, a supplementary savings program has been drawn up of Euro 50 million in 2009, involving the discontinuation of 600 jobs. The expected one-off total restructuring costs will amount to Euro 45 million in 2008 and Euro 20 million in 2009.
|
Second quarter |
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|
In million Euro |
2008 |
2007 | ||
| Operating income |
9.2 |
28.9 | ||
| Reorganization costs |
12.0 |
0.7 | ||
| Sales of ODT |
-1.0 |
- | ||
| Normalized operating income* |
20.2 |
29.6 | ||
| Capitalised R&D costs (net) |
6.9 |
6.1 | ||
|
* adjusted for one-off items |
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