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Turbon AG share price gains

October 9, 2019

For those that track share prices, the good news is that over the last three months the Turbon AG share price has gained 17 percent.

From the heady price of €23.09 ($25.35) per share in June 2015, the share price has fallen year on year to €2.98 ($3.27) last December, but over the last three months the share price has rallied from a floor price of €2.82 ($3.09) to €3.50 ($3.84).

Turbon is not a profitable company and the fall in the share price is linked to the fall in revenues that have shrunk by 20 percent year-on-year which has led to Turbon AG being in the red for the last two years.

The turnaround plan is in full swing as the printing division is consolidated and reorganised and new growth opportunities in other electronic manufacturing sectors come on stream.

The Turbon Group of companies declared consolidated sales of €29.5 million ($32.6 million), for H12019. A decrease compared to the same period of the previous year, where consolidated sales were €33.7 million ($37.2 million).

In the detail of those numbers lays the heart of the Turbon conundrum. Print division sales are decreasing at a faster rate than the sales at the new electric division are growing. Sales of laser cartridges amounted to €11.9 million ($13.1 million) compared to €16.8 million ($18.5 million) in the same period of the previous year. In the electric division, sales rose from €5.3 million ($5.8 million) in the previous year to €6.2 million ($6.8 million) in the first half of 2019.

With the exception of laser printer activities at their Romanian facility, all other activities have been deconsolidated into other entities. Other good news for Turbon this summer was the settlement of an IP dispute with Canon Inc. These changes and the settlement should bottom the sales drop at the printer division and enable growth and profitability to return to Turbon AG.

Full year results for Turbon should hopefully be more encouraging.

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