At the end of October, 3D Systems – the second largest company in the global 3D printing industry, announced deep restructuring, warning at the same time that the financial results for the third quarter of 2023 will be disappointing. And here they are. The company recorded another decline in sales and generated a loss. According to 3D Systems CEO Jeffrey Graves, the main culprits are a weak economy and global inflation, which are causing less demand for industrial and specialized 3D printers as well as an increase in their production costs. At the same time (as usual), he sees great prospects for better times in the future.
In the third quarter, total sales fell -6.4%, generating $123.8 million in revenue for the company. Operating loss was -$11.7 million, an improvement over last year when the company recorded a loss of -$37.4 million. According to Graves, these numbers reflect the current difficult economic situation – rising inflation is putting a strain on consumer spending and, as a result, potential 3D Systems customers are also refraining from investing in 3D printers. The revenue decline was the highest in the dental sector.
At the end of October, 3D Systems announced a savings plan of USD 45-55 million, which is to be implemented by the end of 2024. It will mainly involve staff reduction and the closure of several branches. According to Graves, this is necessary to reduce fixed costs and maintain profitability. In the longer term, however, the CEO sees great growth potential in 3D printing.
Graves says overall, 3D Systems remains in a solid financial position. The coming year will see the largest number of new product launches in the company’s history – 39 new 3D printers, significant improvements to existing 3D printers, new materials and accessories.
Source: www.3dsystems.com