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Turbon reports 11 percent decline in 2013

April 2, 2014

The cartridge supplier blamed the decline on its European business. 

Turbon Group's global headquarters in Germany

Turbon Group’s global headquarters in Germany

PBS and Finanzen reported on Turbon’s financial results for the fiscal year in 2013, with the main news the decline of more than eleven percent in sales from €84.9 million ($117 million) to €75.4 million ($104 million), and Turbon noted that “the reason for this decline is in our European business”.

PBS noted that the “high impact on overall sales” came from “particular retroactive bonuses” owed to major customers in the course of “year-end negotiations in the last quarter” of the year. Turbon noted though that it was “possible for us to pass on some of the bonus payments to suppliers, so that the effect on earnings [is] less than the effect on revenue”.

After taxes, the company saw a consolidated net profit of €3.2 million ($4.4 million) compared to last year’s €4.1 million ($5.6 million) and in 2014 it expects to see “continued intense price competition in the supplies market”, in response to which it plans to increase “sales activities and cost reductions”, and to which its two acquisitions, of Clarity Imaging Technologies and ILG, should “strengthen [its] market position”.

Finally, the company noted that in 2014 it is planning for a group turnover in excess of €100 million ($137 million), as well as an increase in pre-tax profit to over €6 million ($8.2 million). It reported double-digit declines in November last year, blaming price competition for an extended fall in sales.

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