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Xeikon in trouble – blames Xerox sales fall for profit loss

Tuesday, 20 March 2001
By Print 21 Online Article
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A loss of $28m for digital press manufacturer Xeikon in 2000 was a result “far below our expectations” said Alfons Buts, president and CEO. He blamed the fall on fewer sales by Xerox of the company’s colour digital presses, the DocuColor 100, which this year accounted for 14% of total revenue as compared to 29% in 1999. In addition the integration of the Agfa DPS business added to costs rather than improving sales or margins.

The news comes in contrast to a bullish release from rival Indigo where the ebullient Benny Landa, reports record revenues of $49.4m and a profit of $2.9m for the 2000 fourth quarter. Indigo increased its installed base by 50% last year, mainly with the rapid uptake of the UltraStream 2000 that was released at Drupa.

“While we are optimistic about the future, we are also cautious regarding the competitive and economic environment. We gained market share in the commercial printing market in 20000 and expect this trend to continue,” said Landa.

In Australia there is very little Xeikon sales activity following Agfa and Edward Keller’s withdrawal from the arena. Print & Pack has yet to launch its MAN Roland DigiPrint strategy while Xerox is focusing on its own successful DocuColour 2060. Indigo is continuing to increase its leading installed base with Michael Mogridge of ODIS about to announce new installations in coming weeks. He reports a lot of interest from commercial printers in the Ultrastream 2000 products.

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