"Our efficiency enhancing measures are taking hold, while increasing sales are delivering profit and putting us on course to meet our targets," said chief financial officer Herbert Meyer.

The group's post tax losses were reduced to 41m (euro59m), including the 43m loss from the offloaded digital and web divisions, compared to 90m in the same period last year.

Once adjusted for the sale of its web and digital divisions, the group's sales rose 8% on last year to 955m. The same figures also showed a 23% increase in incoming orders to 1.3bn.

"After a difficult three years, the print industry is gradually picking up," said chief executive Bernhard Schreier. "The high order levels, boosted by Drupa, will start to show up in the company's sales figures over the next few quarters."

The firm's outlook for 2004/2005 remained unchanged, it is projecting a net profit in at least the "mid-double-digit million euro range".

Story by Darryl Danielli