Pelikan to Eliminate 160 Jobs in Germany and Switzerland

[Anonymous]

Pelikan to Eliminate 160 Jobs in Germany and Switzerland

On January 9, OPI reported that Pelikan, a manufacturer of aftermarket ink and toner, compatible cartridges, and other third-party supplies, among other products, will eliminate 160 jobs in Germany and Switzerland following a “marked loss” in 2011. Pelikan is also reportedly considering closing eight of its 13 production facilities within the next three years.

OPI indicates that 100 jobs will be cut at Pelikan’s production and distribution facility near Hanover, Germany, and 60 employees will be let go at the Hardcopy Production division in Switzerland. According to Pelikan’s website, the headquarters of Pelikan Hardcopy Production AG’s Technology Center is in Wetzikon near Zurich, Switzerland, and Pelikan Hardcopy Production employs about 2,400 people worldwide.

We have yet to see Pelikan’s financial report for fiscal 2011, but we have seen the firm’s interim report, published in September, for the first half of the year ended June 30, 2011. In the first half of 2011, Pelikan had sales CHF123.7 million (approximately $130 million), down from CHF148.4 million ($155 million) in the first half of 2010. The company says it was impacted by the strength of the Swiss franc against the euro and the U.S. dollar. Overall, 71 percent of the firm’s sales come from Europe, 22 percent come from Latin America, and nearly 7 percent come from other countries, including the United States.

Pelikan reported that its first-half sales decreased in Germany and Europe due to weak sales of printer consumables and the strategic decision to end distribution of OEM and private-label printer consumables and to concentrate on its branded business in the Hardcopy sector. Pelikan indicated that it expected to see lower sales in the second half of 2011 as well. The company reported that it was working on a restructuring plan for its German operations. Presumably, the job cuts are part of these restructuring efforts. It should also be noted that Pelikan has faced several patent-infringement lawsuits filed by printer OEMs including Canon, Epson, and HP.

It may be that restructuring will help Pelikan emerge a leaner and stronger competitor, but the firm’s reports of weak consumable sales are not encouraging. We will continue to follow developments at the company with interest.

[Author]

January 23, 2012 at 9:11 AM