Barco says its profits will be less than half the level of last year.

It blamed the deterioration on a 12.4m (e20m) stock write-off in its Projection division, write-offs associated with its 3.65% stake in Xeikon, and an early write-down of goodwill of recent acquisitions.

As part of a cost-cutting plan it has laid off 350 staff, 40 of whom were in Barco Graphics European customer support.

Delays in shipping its Mondrian VLF platesetter added to Barco Graphics problems.

In spite of these problems, Purup-Eskofots acquisition of Barco Graphics is on schedule, and should be completed within a month.

Discussions to spin off its industrial printing unit are in progress and Barco expects the deal to be completed with a finance firm by next Aprils Ipex.

Barcos industrial printing includes its dot factory ink-jet press, security and decorative print software.