Sales and margins contract while expansion in other areas continues to grow.
Turbon reported that their consolidated sales in the 2017 financial year was € 89.2 million ($108 million), down €7.4 million ($8.95 million) on 2016 sales of € 96.6 million ($116.9 million) mainly due to the delayed acquisition of the Interactive Printer Solutions Division of NCR Corporation in the Middle East and Africa which should have completed for Q3, but finally completed on 21st December.
The gross margin in the 2017 financial year was 21.1%, down 4.6% on the 2016 margin of 25.7%. The margin impairment is mainly due to the one-time expenses in connection with the ongoing restructuring of the printing division and resulted in a consolidated loss of €2.2 million ($2.66 million) for the year. The profit for 2016 4.0 million ($4.85 million).
The Turbon Group will operate in two segments: “Turbon Printing” will focus on the development, production and distribution of printing supplies. Primarily toner cartridges for use in laser printers and a focus in the area of Managed Print Services (MPS). The recent acquisition of the Interactive Printer Solutions division of NCR Corporation’s product range including printed and unprinted paper rolls for cash registers and cash machines, bank checks and Enhanced punch-through forms supplying this range of products to banks, Retail chains and service companies (e.g. hotels) in the Arab world.
The acquisition of Interactive Printer Solutions division of NCR Corporation in December 2017 at a cost of €3.8million ($4.6 million).
“Turbon Electric” will focus on the development and production of electrical and electronic assemblies concern. In early 2017, and has acquired a 66.7% stake, via Turbon Cabling Technologies GmbH (TCT) in KP electrics sro (KPE) a specialist in cable assembly.
In the first quarter of the current year 2018, acquired a 51.0% stake, via Turbon Cabling Technologies GmbH of cable manufacturer, CPL Connector Productions GmbH. In the same quarter, they acquired a 50.001% stake, via Turbon Electric Technologies GmbH in SE-TEC GmbH (SETEC) based in Lostau, Germany.
The outlook for 2018 looks positive with the new Turbon Electric division 2018 sales forecast of €12.0 to €13.0 million ($14.5 to $15.7 million) and earnings before taxes of €0.7 million ($0.85 million). The 2018 forecast for the Turbon Printing division is expected to be €70.0 to €80.0 million ($84.7 to $96.8 million) due to positive outlook both in the area of MPS and in the newly added business in the Arab world in 2018 also a slightly positive result before taxes.
