Technotrans' Results Show Improvements

For the third quarter 2003 Technotrans has reported positive results with revenue up by over 11 percent to 27 million Euros over the second quarter of the year.

For the third quarter 2003 Technotrans has reported positive results with revenue up by over 11 percent to 27 million Euros over the second quarter of the year.

All market segments contributed, notably the print, which posted an increase of more than 8%.

The print division's revenue totalled 50.5 million Euros after nine months (previous year 62.8 million Euros, down by 19.7%), showing that the downturn in the industry had slowed considerably.

Third quarter revenue of 17.3 million Euros was up more than 8% on the prior quarter (15.9 million Euros).

This was attributed to a recovery in the volume of deliveries to German and Japanese printing press manufacturers, the positive development of Technotrans American subsidiaries and project business for ink supply systems, for instance.

The nine-month profit the print division has posted is 1.6 million Euros (previous year 3.1 million Euros).

The company said it anticipates a stabilisation at this higher level at the end of the year, and a slightly positive trend at the start of 2004.

This view is based in part on the improvement in the business volume following the quiet summer months, and in part on the recent major international exhibitions that have taken place: the IGAS in Tokyo and the GraphExpo in Chicago.

"Whereas printing press manufacturers are still exercising caution we believe there are already initial signs of a recovery, though its nature and extent remain as yet unclear," said Heinz Harling, Technotrans' board of management chairman.

With total company revenue totalling 77.2 million Euros after nine months (previous year: 89.6 million Euros), the decrease over the past twelve months was only 13.9 percent, said the company.

Compared with the previous year, Technotrans has enjoyed a significant rise in gross profit.

The gross margin rose to 36.2% as against 30.7% in the previous year.

Although operating profits fell by 20% in absolute terms, down from 2.7 million Euros in the previous year to 2.2 million Euros in the third quarter of 2003, the margin improved and now stands at 8.3%.

Higher administration costs (for consultancy services) were the main obstacle to an even more pronounced improvement, claimed the company.

On the strength of operations, a figure of 10.5% could have been achieved and a high tax burden from the German parent company also had a marked effect.

The company has reported a reduced net profit of 2.070 million Euros after nine months (previous year: 3.048 million Euros).

Harling added that the company believes it is on target to achieve its main goal of a profit for the year of five million Euros, adjusted to 4.5 million Euros net after German tax amendments laws.

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