Industry sales were reported to have increased by 3.6 per cent during the June 2008 quarter compared to the March 2008 quarter and were up by 6.3 per cent compared to the June 2007 quarter. The June quarter outcome also represented the third consecutive quarterly increase in sales.

For the 12 months to June 2008, industry sales totalled almost $20.4bn representing an improvement of 7.8 per cent on the outcome of the previous year.

Pre-tax profits were also reported to have improved during the June 2008 quarter rising by 2.7 per cent on the previous quarter’s outcome and by 12 per cent when compared to June quarter 2007. For the full year to June pre-tax profits stood at just over $3bn representing an improvement of 21.7 per cent on the reported outcome a year earlier.

Defying the improving trend were new capital expenditure figures which showed a deterioration of 12.6 per cent during the June 2008 quarter compared to the March 2008 quarter. Compared to June quarter 2007, the reported deterioration represents 14.8 per cent.

During the 12 months to June 2008, the printing industry was reported to have spent $614m in new capital expenditure representing a deterioration of one per cent on the outcome for the same period a year earlier.

Based on industry expectations there is almost $600m of planned investments in the pipeline.

Hagop Tchamkertenian, national manager for policy and government affairs of Printing Industries says the reported strength of the June quarter results for sales and profits came as a surprise.

He says, “It could be that the non-printing segments such as the publishing sector are doing exceptionally well which has helped to lift the group. The new capital expenditure numbers are consistent with what we were expecting based on our internal research which showed that investment was moderating.”

Tchamkertenian says that while some revisions of the data may also be possible, the future prospects of the printing and associated industries had improved in recent weeks due to the likelihood of cuts in official interest rates.

He says, “Given that the Reserve Bank of Australia is now expected to lower official interest rates when it meets tomorrow, the economic prospects for the printing and associated industries are looking brighter than they did a couple of months ago.”

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