Displaying items by tag: printing

CPI's net profit dropped 4.2 per cent to $2.04m for the first half of 2009-10 while earnings before interest and tax (EBIT) fell 27.6 per cent to $4.2m. The Australian paper giant says trading conditions remain difficult with volumes still below the levels two years ago.

In a telling insight into the current state of the domestic printing industry the company also reports its revenues from ordinary activities are down 24.6 per cent to $209m, from the $277m it recorded in the latter half of 2008.

CPI told shareholders today that in view of the still difficult conditions in the industry it has determined not to declare a dividend for the time being. CPI's share price plummeted 22 per cent following the release of its figures.

Bernard Cassell, managing director of CPI says, "During the six months to December 31, conditions remained difficult due to the depressed levels of activity in the economy generally, and the printing industry particularly. Volumes were significantly affected with anecdote evidence suggesting the industry volumes were down by 20 per cent."

Cassell also says that in line with the difficult conditions the Group has focused strongly on cost and balance sheet control. He says, "Cost control initiatives which had begun in the previous financial year, were continued and consolidated. Overheads for the first six months were 17 per cent below the prior year, exceeding the targets that had been set."

Commenting on the decision to sell its Graphics Division, with Komori presses, to Ferrostaal Cassell says, "The opportunity was taken to further rationalise product ranges and clear out discontinued lines. This process is now well advanced."

Ferrostaal has bought the conventional printing machinery business of CPI Group in Australia and New Zealand, including the distribution of flagship brands, Komori (offset printing presses), Wohlenberg (guillotines and perfect binders), Baumann (postpress handling equipment) and Osako (saddle stitchers). Brian Moore reports.

The deal was announced in a letter to the Australian Stock Exchange this morning from CPI Group managing director, Bernard Cassell, who said, "The sale is part of CPI's strategic plan to concentrate more on its core business. We are delighted to be able to enter the arrangements with Ferrostaal who are a proven supplier to this market."

Financial arrangements of the transaction have not been disclosed.

Ferrostaal is taking over related spare parts inventory, selected sales and service staff including Gerard Wintle, and assume responsibility for all service and outstanding warranty obligations of the brands involved.

CPI will continue to sell digital finishing and wide format equipment and related consumables.

In an interview with Australian Printer, Ferrostaal CEO, Markus Haefeli said that he was delighted with the transaction. "Since parting the ways with manroland last year, Ferrostaal has been looking carefully for a top of the range brand and in Komori, we now have it," he explained.

"Komori, together with the other market-leading brands acquired through the CPI purchase will further strengthen Ferrostaal's position as the graphic arts economy continues to recover in Australia and New Zealand."

The CPI deal has brought to a climax an aggressive search by Haefeli for top flight brands to compliment the Ferrostaal range.

"Ferrostaal is strongly committed globally to the printing industry and over the last 12 months has demonstrated this with substantial investment in people, infrastructure and brands that make it a major player both in conventional and digital print."

Those relationships include a tie-up with Canon in digital print and a soon-to-be announced representation deal with a major prepress manufacturer including both heavy metal and consumables to replace Ferrostaal's distribution arrangement with Kodak which was terminated earlier this year.

Haefeli expects the deal with CPI to be concluded in the next week and that the transfer of people, brands and inventory will be completed immediately thereafter.

Despite the financial upheavel of 2008-9, Ferrostaal during this time went through a change of majority ownership from the German MAN group to the IPIC (International Petroleum Investment Company, Abu Dhabi) with the resulting infusion of substantial funds for its continued growth and expansion. Though involved in other high capital investment areas such as oil and infrastructure, Ferrostaal is very seriously committed to print, as its investment in Australia and overseas continues to show, says Haefeli.

"There is minimal overlap of brands - the Ferrostaal and CPI range have proven very complimentary - and we are looking forward to growing our business with our existing customer base as well as exploring the possibilities of a whole new group of customers in the graphic arts industry."