Manroland Sheetfed: we can still make money with stagnant press prices

KBA recently announced a 2.5% price rise after it described the sheetfed market as “too price-driven”.

However, Langley Holdings chairman Tony Langley signalled that he is happy with current press prices despite the fact they haven’t risen in the past five years.

“While our competitors are losing money at current price levels, we are not. Our company’s cost base is much lower, so I am content to sit it out,” he said.

Manroland Sheetfed’s unaudited accounts for the year ended 31 December 2012 show a pre-tax profit of €68.9 million ($89 million) on turnover of €358 million and net assets of €80.9 million.

[Interview: Tony Langley]

Langley Holdings’ audited accounts excluding Manroland show a pre-tax profit of €121 million on turnover of €527 million. That would give the combined organisation 2012 revenues of €885 million and pre-tax profits of €190 million.

The accounts also reveal that Langley acquired Manroland Sheetfed for about €80 million, including €3 million costs and management fees, with the balance on property, plant and equipment, inventories, receivables, international subsidiaries and goodwill.

Manoland Sheetfed will publish its audited accounts for the 2012 calendar year in March. From 2013, it will be incorporated into Langley Holdings’ group accounts.

The decision not to combine the two sooner was down to the “substantial non-recurring costs and gains” arising from the insolvency of Manroland AG, and post-acquisition restrcutring costs that would have “distorted the results of the group”.

Langley Holdings said it had transformed Manroland Sheetfed from “the train-crash that hit the buffers in November 2011…into a company that can now break even producing just 100 presses per year”.

Langley Holdings
Turnover €527.1m
Operating profit €116m
Pre-tax profit €121m
Cash €208.2m
Employees 2,264

 

Manroland Sheetfed
Turnover €358m
Operating profit €71.4m
Pre-tax profit €68.9m
Cash €46.4m
Employees 1,740

 

This article originally appeared at printweek.com

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