Preview CE Quarter 1-2008 results

Wednesday May 7th, CE will announce their Q1-2008 results. Today we were informed about analyst expectations for these results. The average expectation of 7 analysts is an increased net result of 13% to EUR 18 million compared to EUR 15.9 million in Q1-2007. Expected revenue is EUR 1.36 billion versus EUR 1.44 billion for Q1-2007.

The analyst expectations are taking into account the divestment of ASAP in 2007, so the data are comparable to the current situation with main activities in Office Products and Printing Systems. Management of CE already gave us some guidance about revenue with this press release on April 8th, stating that organic growth for North America was 2% and for Europe 3% for the quarter. Taking into account that the average exchange rate of the EUR/USD for the results for Q1-2007 was 1.31, while it now will be around 1.50, it is not strange that a revenue decrease in Euro's is expected

I find the analyst expectations of EUR 18 million for net results very cautious. I would feel more comfortable with a revenue number above EUR 1.4 billion and a net result above EUR 20 million. Even this would still be a result that is more confirming the current sluggish situation, and would not be a strong indication of performance improvement. A EUR 18-20 million result would translate into a result per share of EUR 0.10, not exactly a number that calls for excitement about the stand alone strategy of the company. I sincerely hope that the company will give us a positive surprise on Wednesday beating these estimates. Obviously we also would be very pleased to get an update on the acquisition proposal from Staples.

Please find below the full Dutch text of the analyst expectations:

AMSTERDAM (Dow Jones)--Corporate Express meldt woensdag voorbeurs een stijging van de nettowinst van 13% tot EUR18 miljoen over het eerste kwartaal van 2008, van EUR15,9 miljoen over het eerste kwartaal van 2007. Dat is de gemiddelde verwachting van zeven door Dow Jones Nieuwsdienst geraadpleegde analisten. De omzet komt naar verwachting uit op EUR1,36 miljard tegen EUR1,44 miljard over het eerste kwartaal vorig jaar, waarbij de daling veroorzaakt zou worden door de moeilijke economische situatie in de Verenigde Staten. Analisten kijken uit naar uitspraken van het bedrijf over het ongevraagde biedingsvoorstel dat zijn Amerikaanse concurrent Staples in februari deed en naar de verwachtingen van het bedrijf voor heel 2008. Omstreeks 16.30 uur noteert het aandeel 1,2% lager op EUR7,39, terwijl de AEX onveranderd noteert. (TJW/INK)

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May 05, 2008 10:34 ET (14:34 GMT)
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