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manroland Sees Growth in Incoming Orders, Records Earnings Loss

March 17, 2011
OFFENBACH, GERMANY—March 17, 2011—Amidst economic rebounds, manroland recorded clear gains in orders for its 2010 financial year. Incoming orders were up by 15 percent from the previous year, totaling 976 million euros. Sales, on the other hand, decreased to 942 million euros (compared to 1,112 million euros in the previous year), attributable to the low number of orders in 2009. Operating earnings (EBIT) registered a loss of -66 million euros.

Nevertheless, signs of a recovery were apparent by the fourth quarter and an operational turnaround could already be achieved within this period. For the 2011 fiscal year, a return to operational profitability is expected.

The continued increase in demand in the growth regions of China, India and Latin America, along with successful appearances at industry trade fairs—such as the Ipex in Birmingham (England) and Expoprint in São Paulo (Brazil)—were major factors driving the positive order situation.
This positive development was not yet reflected in sales, which at 942 million euros for the 2010 financial year were 15 percent below the 2009 level of 1,112 million euros. The export ratio increased to 80 percent, with a strong gain in the share for the emerging markets. Sales in the BRIC countries increased by 50 percent from the prior year. The services business, primarily consisting of spare parts, maintenance concepts (printservices), and pressroom products (printcom), was further expanded.

“There was a clear upwards trend for incoming orders in 2010. Our business in China, Latin America, and Germany was particularly strong. Our product innovations in both sheetfed and webfed offset printing, as well as our range of services were given an especially warm welcome,” said Gerd Finkbeiner, manroland’s CEO. “We are assuming, however, that we will not be able to sustain incoming orders and sales at the levels we had prior to the economic crisis. We have undertaken major financial and operational efforts to adjust our capacities accordingly, and we expect a satisfactory utilization in the medium term.”

Not including external personnel and trainees, as of Dec. 31, 2010, manroland had a total staff of 7,147 worldwide, with approximately 84 percent in Germany. This represents a decrease of roughly 10 percent from the previous year. By the end of 2012, the number of employees is scheduled to be reduced to under 6,000.

manroland is expecting a continued economic recovery in the printing industry over the coming months. The company anticipates a moderate growth in sales for the current financial year 2011. The package of measures to ensure long-term independence, initiated in September 2010, is scheduled for implementation by mid 2012. The associated additional savings are estimated at 50 million euros annually, and will be fully realized from 2013 onwards. In the medium term, manroland expects sales levels to return to well over 1 billion euros a year. A return to operational profitability should be achieved in 2011.

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Most Recent Comments:
Karen Poole - Posted on March 17, 2011
Manroland is a great company and I hope they have continued success!
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Archived Comments:
Karen Poole - Posted on March 17, 2011
Manroland is a great company and I hope they have continued success!