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CE Q3 hit by slowing US sales
November 2007 — Amsterdam (NL): Corporate Express (CE) has reported a 31.4 percent fall in Q3 operating profit to €43.3 million ($62.61 million) from €63.6 million a year earlier, attributed to slowing sales in its US division.Both the company’s European and Australian OP net sales increased in Q3. European net sales were up by 40.8 percent at constant rates to €311.1 million, from €220.2 million in 2006, while Australian net sales increased by 4 percent at constant rates to €207.9 million from €193 million in the previous year.However, North American OP sales only grew by 0.8 percent at constant rates to €738.5 million, compared to €784.8 million a year earlier attributed to increasing pressure on margins and falling market share.Total Q3 net sales were up 7.3 percent to €1.57 billion from €1.52 billion a year earlier.Peter Ventress, the company’s newly appointed CEO, said: “We are encouraged by the strong performance of Europe, Australia and Printing Systems. Organic growth for Europe was 7 percent in Q3 with above average performance in the mid-market.”In the US we have been busy simplifying our organisation and energising the sales effort. Having stabilised our service capabilities there is still work to be done in the coming quarters and all efforts are focussed on this. North American organic growth of -1 percent is more or less in line with market growth. Although market conditions in the third quarter trended in line with the second quarter, we remain cautious regarding US market conditions.”
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