The result, which was heavily impacted by €16.6m of restructuring charges, reflected the "extremely difficult market conditions" the print industry had faced in the first six months of 2009.

Group revenues fell to €186.2m from €205.3m in the first half of 2009, which the group said was ahead of the 20% decline in volumes experienced across the European print market.

However, its outlook for the European market was negative even by the cautious standard the bearish group has traditionally set.

In a statement accompanying the results, chief executive John Caris warned that the graphic industry would have to "change radically and permanently if it is to ever create a healthy future for itself".

He said that the decline in volume had exacerbated the overcapacity in the sector, which is now estimated to be at 25-30%, and warned that "radical rationalisation and/or consolidation must occur before there can be any question of recovery in the balance between supply and demand".

Having been thwarted in its various attempts at consolidation, Roto Smeets is currently pursuing a "standalone business plan" that has resulted in a significant reduction of capacity.

It is currently in the process of cutting capacity by 8%, which will result in the retirement of 13 obsolete presses and 450 redundancies in this year and the next.

Depite news that France and Germany had exited recession, the group said that it expected no improvement in the market in the second half of the year and said it would "make no statement about the anticipated results for 2009".

For more see next week's PrintWeek.