The US-based company posted an increase in gross margin, pre-tax profit and net income, the latter by 514% to $4.8m. This was despite a 16.1% drop in net sales, from $133.4m to $112m.

President and chief executive David Schawk said the "substantial improvement in margins" was attributable to cost-cutting efforts, as well as cuts in restructuring expenses and asset impairments.

He said: "We are pleased that our cost reduction initiatives have made an important contribution to the improved financial profile of this company, and... have not impacted our ability to serve our clients, but rather have prepared us to better serve our clients when the economy returns to growth."

Schawk added that, as a result of the successful implementation of the company's restructuring plans in 2009, it now expected to generate an additional $2m-$3m in annual cost savings, on top of the $6m-$7m reduction in expenses already expected.

"We continue to take steps to better utilise our global capacity, while reducing our cost base and... now expect to generate almost $10m in annual cost savings," he said.

Turnover for the first six months was down more than $42.8m to $217.1m. The firm, which has sites in the US, UK, Europe, Mexico and Asia attributed the decline to currency fluctuations and a slowdown in business arising from clients reducing their levels of advertising, marketing and new product introductions.

However, Schawk stressed that its market share remained strong.

The company also reaffirmed its projected full-year revenue range of $440m-$450m and adjusted EBITDA range of $43m-$51m.

Schawk Results
Turnover
Q2: $112m (2008: $133.4m)
Half year: $217.1m ($259.8m)
Pre-tax profit
Q2: $7.1m ($3.7m)
Half year: $4.1m ($8.7m)
Net income
Q2: $4.8m ($776,000)
Half year: $2.5m ($5m)