Domino Printing struggling in China and Europe

published 26 June 2012

Industrial printing equipment maker Domino Printing Sciences has had a tough six months to the end of April, as sales of traditional printing machinery disappointed in Europe and China.

Underlying profits before tax were £25.7m, down 9% on the same period of 2010/2011, while revenues fell 3% on the prior year to £151m.

The firm has boosted the interim dividend by 10% to 7.24p but underlying earnings per share have dropped 4% to 17.2p.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

The problem for Domino has been customers delaying investment, with equipment revenues down 4%. There were some notable bright spots: the UK saw sales rise 8%, while in the USA income rose 13%.

Unfortunately, China was down 4%, while Europe fell 8%.

Peter Byrom, Chairman, said: "Volumes of our newer technology products, Laser, Thermal Transfer Overprinting and the K600i digital press, were ahead of the prior year but our sales of traditional technology printers were depressed, in particular in Europe, China and SE Asian markets.

He added: "Demand for our consumables and other aftermarket products, which represent approximately 60 per cent of sales, has been in line with our expectations."

Overall, Domino is "cautious" on the prospects for a recovery in the market and thinks full year sales will fall just short of the prior year.