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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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