Following the company’s announcement in April that its consolidated sales for 2017 were down by €7.4 million ($8.95 million), Turbon has now revealed it expects a 2018 FY loss of another €7 million ($7.9 million).
Turbon AG has released details of an adjustment to its financial forecast for 2018, which is being submitted to the company’s Supervisory Board today.
The original sales forecast was between €82 million ($93.3 million) and €93 million ($105.8 million), with €12-13 million ($13.6-$14.7 million) attributed to Turbon Electric and €70-80 million ($79.6-$91 million) attributed to the Turbon printing segment. While sales development for Turbon Electric “is fully on schedule”, the company has announced that the forecast for the Turbon printing segment is now €65 million ($73.9 million), due to a reduction in the planned turnover of Turbon’s laser cartridge business.
As a result, the company is “reducing the sales forecast for the entire group at about €77 million ($87.6 million)”.
Turbon AG went on to explain that in the Turbon Electric segment, “we are now planning to exceed the original forecast […] before tax of more than €1 million ($1.1 million)”, whereas for the printing segment, the company forecasts a loss in earnings before tax of €2.5 million ($2.8 million).
The reason the company has provided for this adjusted forecast is the “high losses in the business with laser cartridges”.
Turbon AG has announced the measures it plans to take to counteract these losses; these include the disposal of both long-term and short-term assets, “including the sale of loss-making business units”.
Turbon says the measures and forecast losses are “no negative” and assures that the repayment of its bank debt “can be continued as planned and reported”, adding that its existing debt for the Turbon printing sector “remains absolute priority”.
Following the sale of its investment property in Meerbusch, Turbon explained that it had reduced its debt by €5.3 million ($6 million), leaving the remaining debt for its laser cartridge business at €4.7 million ($5.3 million).
The company concluded that it would submit its final half-yearly report by 30 September 2018.
