RSDB LOOKS FOR A PARTNER

[BIZ: Weert, August 22]
Roto Smeets De Boer, employing 4200 and producing EUR 700m in annual revenues, is the largest printer in the Netherlands - in Europe’s top five - and prints ‘The Economist’ among other titles. It is now looking for a partner in Europe. “We are looking for a market party that wants to combine its printing capacity with us and is prepared to, when necessary, dismantle presses”, said chairman of the board Hans de Jong of RSDB. The RSDB boss said this in Amsterdam on Thursday, in explaining his company’s H1, 2005 results.

- Net profit 10% down
- Operating result (EBIT) 14% lower
- No forecast for 2nd half-year 2005 as a result of uncertain market conditions

In the first half of 2005, RSDB NV made a net profit of EUR 4.9 million, 10% lower than the net profit for the corresponding period of 2004 (EUR 5.5 million). The decline was mainly caused by deteriorated market conditions in and outside the Netherlands in the months of May and June. Although higher volumes were sold in a shrinking market while further cost reductions were achieved, this could not sufficiently compensate the increased pressure on prices.

The highly fragmented graphic sector is struggling with structural overcapacity and increasing pressure on the margins. While the publishers of magazines see their print reduced in Europe, the number of presses simply grows. RSDB currently is ‘only’ using 96% of its capacity and sees price erosion of millions and also in the orders. Roto Smeets De Boer.
(Source: Het Financieele Dagblad)
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