Print giant Presstek is axing thousands of jobs as part of a cost savings plan expected to generate an improvement of £9.7m ($20m) in annual operating profit.
The manufacturer, which has delayed the release of its third-quarter results pending the completion of its corporate inventory, is also aggressively expanding in Europe.
The company recently announced the appointment of Peter Blum as a senior adviser for European operations, reporting to the US head office and working alongside Ray Hillhouse, director of sales and operations for Presstek Europe.
Blum, who was head of European operations for Kodak Polychrome Graphics for five years, is charged with building channels, developing go-to-market strategies and improving operating efficiency.
Jeff Jacobson, chief executive and president of Presstek, wants to grow the company's European business until its "footprint is equal to or larger than the US operations".
The operating expense reduction includes the centralisation of warehousing and distribution activities for North America in Illinois and the consolidation of certain customer care activities in New Hampshire. The net job losses are around 9% of the workforce, including attrition.
Presstek's plans for growth include winning greater share of business from printers with more than £2.4m in turnover, increasing the appeal of DI presses by adding new features, such as the ability to handle larger formats and an extra colour, and shifting its CTP products to open architecture.
Presstek chief financial officer Jeff Cook said the plan hammered out by management was achievable.
"We've based our whole plan pretty much on existing business and revenue levels with modest growth," Cook said.
"We wanted to be sure we could achieve this without having to count on significantly a higher revenue growth rate and if we happen to achieve that, it's the icing on the cake."
The company has also identified cash flow improvements of £12.1m through working capital reductions and the sale of selected real estate assets.
The manufacturer, which has delayed the release of its third-quarter results pending the completion of its corporate inventory, is also aggressively expanding in Europe.
The company recently announced the appointment of Peter Blum as a senior adviser for European operations, reporting to the US head office and working alongside Ray Hillhouse, director of sales and operations for Presstek Europe.
Blum, who was head of European operations for Kodak Polychrome Graphics for five years, is charged with building channels, developing go-to-market strategies and improving operating efficiency.
Jeff Jacobson, chief executive and president of Presstek, wants to grow the company's European business until its "footprint is equal to or larger than the US operations".
The operating expense reduction includes the centralisation of warehousing and distribution activities for North America in Illinois and the consolidation of certain customer care activities in New Hampshire. The net job losses are around 9% of the workforce, including attrition.
Presstek's plans for growth include winning greater share of business from printers with more than £2.4m in turnover, increasing the appeal of DI presses by adding new features, such as the ability to handle larger formats and an extra colour, and shifting its CTP products to open architecture.
Presstek chief financial officer Jeff Cook said the plan hammered out by management was achievable.
"We've based our whole plan pretty much on existing business and revenue levels with modest growth," Cook said.
"We wanted to be sure we could achieve this without having to count on significantly a higher revenue growth rate and if we happen to achieve that, it's the icing on the cake."
The company has also identified cash flow improvements of £12.1m through working capital reductions and the sale of selected real estate assets.
Source: printweek
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