manroland Forecasts Return to Operational Profitability

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 EUR 976 million. Sales, on the other hand, decreased to EUR 942 million(compared to EUR 1,112 million in the previous year), attributable to the low number of orders in 2009. Operating earnings (EBIT) registered a loss of EUR 66 million.

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

The continued increase in demand in the growth regions of China, India and Latin America were major factors driving the positive orders.

This positive development hasn't been reflected in sales yet, which at EUR 942 million for the 2010 financial year were 15 percent below the 2009 level of EUR 1,112 million. The export ratio increased to 80 percent, with a strong gain in the share for the emerging markets. Sales in the BRIC (Brazil, Russia, India and China) countries increased by 50 percent from the prior year. The services business, primarily consisting of spare parts, maintenance concepts (printservices), and pressroom products (printcom), expanded further.

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 EUR 50 million annually, and will be fully realized from 2013 onwards. In the medium term, manroland expects sales levels to return to well over EUR 1 billion a year.