Creo chief executive Amos Michelson has claimed that dramatic cuts in the price of thermal plates will make it difficult for Agfa and Fuji to use consumables bundling to finance hardware sales.
He claimed that Mitsubishi and Lastra's increased thermal plate manufacturing capacity would cause prices to fall to match the price of conventional plates.
"Fuji and Agfa are using consumables to subsidise equipment," said Michelson. "The solution is to ensure the cost of thermal plates means they cannot.
"We already see Mitsubishi thermal plates at prices similar to UV," he said. "This reduces the ability for Agfa and Fuji to subsidise equipment."
Michelson's view is not held by others in the industry, including thermal pioneer Kodak Polychrome Graphics. The firm does not believe thermal plate prices will reach the same level as conventional plates until they account for over half the market.
"I wouldn't like to predict when parity between any CTP plate and conventional is going to happen, but it won't be in the next two years," said John Wilson, product and technical manager plate systems, KPG.
Michelson's comments were an attempt to explain developments the company hopes will increase its competitiveness. This will be the focus of CreoScitex once the integration of the two operations is completed in April.
Costs associated with the integration of the two firms and flat sales compared to the two firm's pre-press sales last year resulted in a net loss of 2.5m ($3.6m) for the fourth quarter on sales of 120m. Pre-tax loss for the quarter was 536,000.
Pre-tax profits for the year fell 70% to 6m on sales up 154% to 313m. The year showed a net loss of 1m. Sales only included the former Scitex pre-press business for two quarters.
Creo chief financial officer Tom Kordyback has resigned. He will remain at Creo as director of operations.
Story by Barney Cox
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