AARHUS, Denmark — Despite a boost from its prominent role at the Beijing Olympics and the positive, albeit delayed, launch of its MAC III Profile, Martin Professional is reeling from a sharp reduction in spending among leasing clients who are holding back on investments in new gear. The company has responded with a reorganization of its European sales organization and plans to cut 200 jobs by year’s end. Martin reported Q3 2008 revenue of DKK 231.6 million, a severe drop from the DKK 290.6 million the company reported in Q3 2007. That resulted in a loss before tax of DKK 12.2 million for Q3 2008, vs. a profit before tax of DKK 31.4 million for the same period a year earlier.
The lower-than-expected Q3 numbers dampened year-to-date results as well. For the nine months leading up to Sept. 30, 2008, Martin generated revenue of DKK 790.3 million against DKK 884.9 million in the year-earlier period. The profit before tax for the nine months to Sept. 30, 2008 amounted to DKK 23.5 million against DKK 70.4 million in the year earlier period. The profit includes a DKK 21.4 million gain from the sale of Martin’s Security Smoke subsidiary.
The full year forecast has been revised with sales projected at DKK 1.1 billion and profits before tax of DKK 25 million, a sharp reduction from the previous full-year forecast of DKK 70 million in profits. Despite that severe setback, Martin is still seeking to expand in international markets. A recent case in point: its alliance with Pro Shows as the company’s new representative in Brazil.
For more information, please visit www.martin.com.
