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 VENLO, The Netherlands, Oct. 13 /PRNewswire/ -- For the third quarter ended Aug. 31, consolidated net income of Oce-van der Grinten NV (NASDAQ-NMS: OCENY) was $7.4 million, or $0.46 per share based on 15,952,480 shares outstanding, compared to $10.0 million, or $0.63 per share based on 15,895,242 shares outstanding at the fiscal 1992 year end.
 An unchanged interim dividend of NLG 0.90 per NLG 4.00 ordinary share (equal to one ADR) will be payable as of Oct. 25, 1993. The interim dividend is not necessarily indicative of the final dividend.
 The group reports in Dutch guilders/florins (NLG). As a convenience for U.S. readers, the results for 1993 and 1992 have been converted at NLG 1.8829: $1.00, the noon buying rate of Aug. 31, 1993. This compares with NLG 1.5808: $1.00 used at this time last year.
 Third quarter revenues declined 6 percent to $321 million. Absent exchange rate effects, the decline was 4 percent. European revenues were especially impacted by the Continent's low level of economic activity. U.S. revenues and profitability continued their positive trend.
 Third quarter operating income, including interest income from financial leases, fell 17 percent to $20 million. Lower than in the first half, this percentage decline is largely due to diminished revenues. The beneficial effects of group-wide efficiency measures are helping to compensate in part for the reduced revenues' narrower margins. The depreciation of most currencies against the Dutch guilder continued in the third quarter, albeit to a lesser extent than in prior quarters.
 Financial lease interest income continued to grow. Net financial expense (aggregate of interest incurred and "other interest received") declined further compared to previous quarters. Currently, the increased interest income from financial leases clearly exceeds present financial charges. The ongoing shift to financial leases from rentals continued to result in lowered depreciation. Consequently, cash flow (net income + depreciation) declined 16 percent to $40.9 million.
 Consolidated net income for the nine months ended Aug. 31 amounted to $21.6 million, or $1.35 per share based on 15,952,480 shares outstanding, compared to $37.2 million, or $2.34 per share based on 15,895,242 shares outstanding at the fiscal 1992 year end.
 Revenues amounted to $985 million, a 7 percent decrease: absent exchange rate effects, the decline was 3 percent. Operating income, including interest income from financial leases, declined 24 percent to $61.9 million. Cash flow declined 22 percent to $123 million.
 Engineering Systems (copying & plotting): revenues declined 10 percent to $437 million. At constant exchange rates, revenues declined 6 percent, equaling that of the first half. The third quarter saw first deliveries of the new Oce 7600 (large format high plain paper copier) and of the new Oce 9500 (large format medium-volume digital plain paper copier/printer). Healthy order activity has followed their launching at this year's Hanover Fair.
 Office Systems (copying & printing): revenues declined 4 percent to $548 million. Absent exchange rate effects, revenues remained unchanged. Deliveries will start shortly to Holland's "GAK" (Joint Administration Office) of high- and medium-volume Oce printers. This is a result of a multi-machine contract to equip its office network.
 Net income expectation for the year remains as expressed when the half year results were published, that is that second half results are not expected to be substantially higher than the first six months'.
 Oce-van der Grinten NV is the Dutch parent company of the Oce Group which is active in some 80 countries and has its own operating companies in more than 25 countries. The group has over 12,000 employees and annual revenues of $1.4 billion.
 Oce is known worldwide for its advanced copying, printing and plotting systems, products and services for the presentation of information on paper. The group serves the Office Systems and Engineering Systems markets with an extensive product range comprising:
 -- Copiers and copying supplies;
 -- Printer and plotting systems;
 -- Light sensitive materials and graphic films.
 Oce is one of three principal suppliers of very high volume office copiers, and in the engineering systems market it is the only company in the world which develops, produces and markets on a global basis the five basic graphic reproduction systems -- diazo, plain paper, plotting and microfilm -- for all volume segments of these markets.
 Oce's products are largely marketed, serviced, produced and e?loped by Oce i elf. Apart from sales of equipment and supplies, the group also derives its income from rentals, leasing and service.
 The Oce Group has its headquarters in The Netherlands, where most of its research, production and international marketing activities are also located. In the U.S., where Oce has a workforce of some 2,000, the group has offices in Chicago and Itasca, Ill.; Providence, R.I.; and Mountain View, Calif.
 Oce American Depositary Shares (ADS) are traded in the USA on the NASDAQ's National Market Systems under the symbol "OCENY", one ADS representing one ordinary Oce share traded on the Amsterdam Stock Exchange.
 -0- 10/13/93
 /CONTACT: Freek Meijer or Marij Verlinden of Oce-van der Grinten NV, in The Netherlands, 011-31-77-592240, or Mary Jo Dieckhaus of Ogilvie Taylor & Associates Inc., 212-686-8144/

CO: Oce-van der Grinten NV ST: IN: SU: ERN

SH-PS -- NY038 -- 1646 10/13/93 11:56 EDT
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Publication:PR Newswire
Date:Oct 13, 1993

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