More than half of printers have negative cash flow: PIAA

The Printing Industry Trends Survey Report for the final three months of 2012 found that respondents were paying their suppliers in an average of 40 days but receiving payments in 51.

Some 54.6% of firms experienced a negative cash flow in the December quarter, while 25% had a neutral cash flow and 20.4% positive.

The findings were based on a survey of 108 firms.

Respondents reported falls in net profits, volumes, revenues, prices and employment levels. Labour became harder to obtain, and wages and material costs increased.

[Related: September quarter report]

Only 51.9% of firms had capacity levels of at least 70%, compared with 62.7% at the same time the previous year.

December 2012 marked the 20th consecutive quarter in which results were below forecast – but respondents still expect March 2013 to bring improvements in net profits, volumes and revenues.

The survey was conducted by the Printing Industries Association of Australia, which said printers’ forecasts during the past five years “have largely been unfulfilled for a range of critical industry indicators”.

The Printing Industry Trends Survey Report had 32 respondents from New South Wales, 27 from Victoria, 18 from Queensland, 13 from South Australia, 11 from Western Australia and seven from Tasmania.

[LinkedIn: Should the industry stop operating on credit?]

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