Xeikon issued a profit warning on Tuesday for its third quarter results.


It forecast revenues of 30m ($42m) compared to 37.8m for the third quarter of 1999. Its share price fell to 7.67 ($10.75), nearly 2 down from its 9.23 price on Monday and almost half of Augusts 12.85.


Xeikon attributed the poor forecast, described by chief executive Alfons Buts, as "particularly dissatisfying", primarily to a 22% decline of the euros value against the US dollar, a two-month delay in the shipment of the CSP 320D - Xeikons first new four-colour sheetfed digital press - and the abandonment, costing 4.3m, of a joint project with Varis to develop a front-end to drive its variable data presses.


Delays in the integration of Agfas former digital printing systems business into MAN Rolands sales and distribution channels were also blamed.


Xeikons senior vice president of marketing, corporate planning and OEM agreements, Herman Remmerie, said the CSP 320Ds would be delivered by the end of the month and distribution channels would be up to speed by the fourth quarter.


He also said that reorganisation of Xeikons worldwide sales and marketing structure into three separate regions - Japan, Northern America and Europe/Rest of the World - with three separate presidents in addition to his role, would ensure greater profitability and efficiency for the company in the long term.


"The focus on three regions who will operate separately and report directly to Alfons Buts, will ensure tighter control, increased follow-up of the markets, and more attention paid to the marketing needs of different products," said Remmerie.


Story by Eloise Seddon