Sensors & Systems - Océ - Results fourth quarter 2008

Océ - Results fourth quarter 2008

Details: Created on January 13, 2009

Highlights fourth quarter:

Unprecedented economic downturn affected the printing industry strongly

Total revenues € 802.0 million (-5.5% organically, excluding fax)

Normalized operating income € 27.8 million (2007: € 50.1 million)

Free cash flow of € 142 million (2007: € 208 million)

Cost reduction program 2008 delivers targeted € 80 million savings

Proposed total dividend for 2008 € 0.15 per ordinary share (2007: €0.64) already fully paid as interim dividend

Comments by Rokus van Iperen, Chairman of the Board of Executive Directors:

'The acceleration of the unprecedented economic downturn has impacted the printing industry since October and as a consequence has also severely affected Océ's financial performance. Amidst this turbulence, we have maintained our competitive position, thanks to our innovative products and strong sales and service organization. Our business model, with approximately 70% recurring revenues, and continued vigorous cost reductions reduced the impact of the economic downturn.

For 2009, we anticipate continuing challenging market conditions. Within our strategy we are executing actions to support our 2009 profitability.We will expand our cost savings initiative from € 50 million to € 80 million in 2009 and generate additional cash flow of

€ 100 million from balance sheet reductions in the area of real estate, inventories, finance lease debtors and accounts receivable.

We will pursue our strategy including exploring of opportunities to enter into new partnerships, enabling us to sell continuous feed and wide format printers through third parties. With these actions we will maintain our competitive position within the current economic downturn.

The continuing deterioration of the economy has impacted the time frame for achievement of our financial objectives. We remain committed to these objectives and will set a new timeframe as soon as the predictability of the economic developments improves.'