Oce hit by Canon takeover costs

Takeover of Canon leads to € 70 million pretax loss for Oce.

In its second quarter results, the company reported operating income of €20 million, while one-off items of €103 million impacted net income.

Rokus van Iperen, (pictured) chairman of the board of executive directors, believes that part of this is also due to a reluctance from the printing industry to invest in new technology.

“Customers continued to be cost conscious amidst ongoing economic uncertainty, especially in North America and Europe. Nevertheless certain markets showed clear signs of recovery, particularly Asia, as well as the graphic arts market,” he said.
 
“Océ realised revenues of € 676 million, exactly the same amount as last year. We significantly increased our EBIT, excluding certain Canon-related one-off items. This improvement reflected the better utilisation of the supply centers as well as our action program related to approximately 2000 job reductions in 2009 and 2010.”
 
van Iperen noted that the second quarter was marked by the successful completion of the transaction with Canon on 9 March 2010. “In the second half of 2010, our compelling combination is expected to show the first commercial results via cross-selling of Canon products in Océ channels and vice versa,” he said.

In a statement, Océ said that for its wide format business, a joint project has started to determine the cross sales opportunities in which both Canon and Océ can deliver a stronger portfolio of Wide Format products to their respective customers. Canon will also sell selected Océ high volume products in certain of their markets and channels.

To watch a video of Rokus van Iperen speaking about the results, click here.