Prepress and digital print systems developer Punch Graphix has taken a 3.3 million Euros (A$6.4 million) hit as a result of a claim against it to do with a milking systems business it sold.

And with the combination of reduced sales and difficult economic conditions, the company – which co-develops and makes CTP systems for Agfa Graphics – will spend another 3 million Euros (A$5.8 million)on cost-cutting measures.

Punch has announced that the International Court of Arbitration has ruled the claim submitted against it in the context of the ongoing proceedings regarding the sale of the Gascoigne Melotte business unit to BouMatic “partly admissible”. Compensation to BouMatic, including costs of the proceedings and interests, is likely to cost Punch about 3.3 million Euros.

The group is looking into the possibility of having the decision reconsidered, but in the meantime is meeting regulations by providing an extra cost of 600,000 Euros to its 2008 financial results.

The cost-cutting programme anticipates an expected drop in 2009 sales and includes, “among others”, centraalising some of its activities. This will give rise to a non-recurring cost of approximately 3 million Euros. A spokesman says the group believes that in doing so it has adapted the future cost structure to the recent developments in the market.