MAN Roland hit by falling order books

MAN Roland has followed Heidelbergs lead by announcing major job losses.

The German press manufacturer is in talks with trade unions over 400-500 job cuts at its Offenbach site. The losses were unveiled as parent company MAN Group announced its third-quarter results and plans for up to 1,000 redundancies across the whole group.

The printing machine division reported a 6.3m (E10m) pre-tax loss for the third quarter, compared to a 8.2m profit in the same period last year.

Sustained weak order and shorter throughput times had hit earnings more quickly in its sheetfed division than in the web-fed sector, the group said.

New orders of 230m were 3% below last year's "extremely poor" third-quarter figure and totalled 722m for the first nine months of 2002.

In the sheetfed sector, new orders fell 27% for the third quarter, while orders for web-fed machines slumped by 34%. MAN Roland's sales also dropped 19% to 260m in the period.

A spokesman said the job losses would affect MAN Roland's small parts production unit and the administration side at Offenbach. Three manufacturing units at Offenbach will also come together under one roof.

The job cuts will not affect the UK, but further cost-cutting measures and restructuring are still possible as MAN Roland looks to return to profitability.

The firm had earlier said that it anticipated that this year's pre-tax earnings would be well below its initial target of 28m, or just half of last year's 56m.

MAN Roland attributed this to the failure of the anticipated second-half economic recovery to materialise, coupled with weak demand and intensive competition leading to increased pricing pressure.

Last month Heidelberg announced 2,200 job cuts in a move to make 130m of annual savings (PrintWeek, 25 October).

Story by Andy Scott

Picture: CEO Gerd Finkbeiner