Overall, PrintXpress managed to stand its ground in what has become an increasingly volatile market. Despite price-related pressures and somewhat sluggish demand, we succeeded in raising tonnage output slightly and maintaining earnings before interest and taxes at a stable level. Given the current market climate, we can certainly draw encouragement from this performance. As regards our performance in the financial year as a whole, the coming months will prove decisive, a situation which is all the more challenging when one considers that this period is traditionally less buoyant than others. Having said that, we have yet to record a clear trend in this area.
By contrast, our industry’s route for the medium term has already been charted: market consolidation within the European gravure-printing sector has clearly gathered pace. Exposed to these changes, many suppliers are currently assessing their position. What is more, there is evidence to suggest that customers are also considering the merits of allocating clearly defined printing volumes to a select group of service providers. Thus, both suppliers and customers are undergoing a process of repositioning themselves. Drawing strength from its powerful position as the second-largest player within the European gravure-printing market and buoyed by a solid customer base, best-in-class production sites and many years of M&A experience, PrintXpress will make every effort to seize the opportunities arising from a changing market in the interests of all its stakeholders – customers, shareholders and employees alike.
Global economic recovery loses momentum
Despite the protracted debt crisis and the impact of the natural disaster in Japan, the global economy continued to perform robustly during the second quarter of 2011. Having said that, there was also evidence to suggest a slight loss in forward momentum.
The individual economic regions again produced divergent performances in the period under review. While the emerging Asian markets and Germany generated strong growth, there were no signs of an upturn for countries on the periphery of Europe. What is more, the United States had to contend with a somewhat stuttering economic recovery.
Unresolved debt crisis sends stock markets into tailspin
By mid-2011 the stock markets had largely recovered from the downturn caused by the natural disaster in Japan back in March. However, fuelled by growing recessionary fears among investors, a situation that appeared unfounded in terms of the overall performance of the real economy, the international capital markets were again faced with a downward spiral in the weeks that followed. Alongside financial stocks, shares of automotive companies also came under increasing pressure, as a number of analysts decided to revise downwards their projected figures for global automobile production in direct response to the anticipated uncertainties associated with future economic performance.
As was the case in the first three months of the current financial year, industry performance as a whole remained anaemic during the reporting period. Irrespective of the seasonal downturn generally associated with the first calendar quarter, restrained demand and excess capacity within the area of web-fed printing put paid to any form of recovery. Both demand and price structures failed to improve during the period under review. Thus, we were proved right in our contention that the current industry malaise is anything but a temporary occurrence in the wake of the general economic downturn but, rather, the result of fundamental structural change which has been exacerbated by the severe recession. Our restructuring programme is tailored precisely to these fundamental evolutionary trends.
Recognised as one of the world’s leading FMCG companies, our client has built an extensive portfolio of high-impact brands marketed in more than 100 countries and generating revenue of several billion euros. In shaping this culture of excellence, the Group has successfully integrated a number of enterprises that share a common goal of creating sustainable growth and shareholder value. The results of this incisive approach are more than convincing: strong financial performance, impressive brand equity and formidable international reach. Committed to maintaining its forward momentum within the global arena, the Group is currently looking to attract a high-calibre business professional for its operations in Norway.
This outstanding opportunity calls for a high-calibre individual with considerable intellect and energy. The successful candidate will be a qualified accountant educated to degree level, with a solid understanding of legal and tax-related issues. Your academic skill set will be complemented by several years‘ experience gained within the international arena, preferably in an FMCG environment. An excellent understanding of industrial processes and the dynamics of consumer products is essential. It also goes without saying that you will be familiar with international accounting standards. This is a pivotal role in the company, and candidates will be expected to demonstrate formidable commercial prowess, coupled with convincing leadership skills and a results-orientated approach to work. To succeed in this fast-track environment, you will also be a strong communicator, with the ability to think on your feet.
The process of reporting significant risks takes place on a regular basis and is complemented by ad hoc reports to the Management Board in the event of sudden or unexpected risks. Overall responsibility for the independent reporting system, which is standardised across the Group as a whole, lies with the Risk Controller, who reports directly to the Management Board and also ensures the functionality of the system. The Risk Controller submits regular reports on risks and associated trends to the Management Board. By pursuing this approach, the Group is able to ensure that the risk management system as well as processes centred around the discussion of the risk report remain an integral part of management activities and an essential element of Supervisory Board meetings.
In November 2009, the IASB issued IFRIC 19 „Extinguishing Financial Liabilities with Equity Instruments“. The Interpretation has yet to be endorsed by the European Union and incorporated into European law.
The Interpretation specifies that a borrower who issues equity instruments to a creditor to extinguish all or part of a financial liability shall treat these equity instruments as „consideration paid“ in accordance with IAS 39.41. The borrower entity shall remove a financial liability (or part of a financial liability) from its statement of financial position. The borrower shall measure the equity instruments issued to the creditor at fair value unless that fair value cannot be reliably measured. If the fair value of the equity instruments issued cannot be reliably measured, then the equity instruments shall be measured to reflect the fair value of the financial liability extinguished. The difference between the carrying amount of the financial liability (or part of a financial liability) extinguished, and the consideration paid, shall be recognised in profit or loss.
In June 2009, the IASB published its amendments to IFRS 2 „Share-based Payment“. The amendments were endorsed by the European Union in March 2010 and incorporated into European law.
The amendments relate to the accounting of „group-settled share-based payment transactions“ as part of which a subsidiary receives goods or services that are paid for by the parent or another group entity. The amendment clarifies that the goods or services shall be accounted for irrespective of which group entity settles the obligation and regardless of whether the settlement is made in cash or by means of equity interests. The amendments to IFRS 2 also incorporate the guidance contained in IFRIC 8 and 11, which were thus withdrawn by the IASB.
In November 2008 IFRIC issued IFRIC 17 „Distributions of Non-cash Assets to Owners“. IFRIC 17 was endorsed by the European Union and incorporated into European law in November 2009.
This Interpretation relates to the recognition and measurement of liabilities from distributions of non-cash assets (e.g. items of property, plant and equipment) and addresses the issue of accounting for any difference between the carrying amount of the assets distributed and the carrying amount of the dividend payable when an entity settles the dividend payable.