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Oce Swings To 3Q Net Loss On Impairment Charge Dutch printing systems maker Oce NV Friday swung to a loss in the third quarter, against expectations for a Profit, as it took a hit from an underperforming unit. The company posted a EUR5.6 million net loss from a EUR21.0 million profit last year, after it took a EUR18.3 million impairment charge for a print procurement unit and its display graphics Operations.
Oce said that Practical Print Solutions, which it acquired two years ago, had failed to deliver expected profits and growth and it had decided to take a charge for the goodwill it had paid.
But even without the charge, Oce still missed market expectations for its profit and sales performance, and analysts said that they would consider lowering their estimates and recommendations.
Profit before the charges came in at EUR12.7 million from EUR21.0 million last year, somewhat below the EUR15 million analysts had been expecting.
Oce, which competes with U.S. giants such as Xerox Corp and generates 40% of its sales in the U.S., proffered some hope that its decline in sales may be slowing – but remained cautious.
“The decline in revenues, in particular in the sale of new systems, is becoming less pronounced,” Oce said.
“Although this trend appears to be continuing in the fourth quarter, it is still too early to determine whether the recovery is structural.”
It said that customers continue to postpone their investment decisions and that the strong euro will impact profits and revenues in the last quarter of the year.
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