Heidelberg Financial Year 2006/2007: Targets Achieved - Further Improvement in Earning
Sales up six percent to 3.803 billion Euro
Incoming orders exceed previous year's good level
Operating profit incl. one-time effects 362 million Euro
Significant improvement of net profit
Higher dividend of 0.95 Euro per share proposed
Prospects for 2007/2008: moderate increase in sales and net
profit roughly equivalent to five percent of sales expected
Heidelberger Druckmaschinen AG (Heidelberg) clearly increased both
sales and earnings in financial year 2006/2007 (April 1, 2006 to
March 31, 2007). "For the fourth year in succession, we have
been able to draw on the upswing in the global economy and the
resultant upward trend in our industry," stated Bernhard
Schreier, CEO of Heidelberger Druckmaschinen AG. "For the
current financial year, we are expecting moderate growth in the
volume of business," he added.
Sales by the Heidelberg Group during the period under review
climbed six percent to 3.803 billion Euro (previous year: 3.586
billion Euro). The fourth quarter alone returned sales of 1.214
billion Euro, the highest level in the last five years on a
Incoming orders in the financial year just closed were 3.853
billion Euro (previous year: 3.605 billion Euro), around seven
percent up on the previous year. The Heidelberg Group thus
succeeded in increasing incoming orders for the third successive
year. At around one billion Euro, the order backlog at March 31,
2007 was on a par with the previous year's high level.
In the period under review, the Heidelberg Group increased
its operating result to 362 million Euro, significantly up on the
previous year (previous year: 277 million Euro). This produced an
EBIT margin of 9.5 percent of sales (previous year: 7.7 percent). A
number of factors contributed to this result, including positive
one-time effects from asset management of around 60 million Euro,
resulting primarily from the sale of Linotype GmbH and the Research
and Development Center in Heidelberg ("sale and lease
back"). During the course of the year, this helped compensate
most of the higher spending on R&D, investments in new
generations of printing presses, more unfavorable exchange rates,
and a decline in sales in China.
The net profit climbed to 263 million Euro (previous year:
135 million Euro) and included a positive one-time effect in the
form of a corporate income tax credit of 73 million Euro. This
credit relates to a change in the way existing tax credits are
treated and has no impact on the level of future dividends. The
free cash flow also increased substantially to 229 million Euro
(previous year: 149 million Euro) as a result of tight asset
"Last financial year, we once again saw a significant
improvement in earnings and free cash flow and in essence reached
the targets we had set ourselves," stated Heidelberg CFO Dirk
Kaliebe. "All in all, we have taken another sizeable step
towards strengthening the company's sustainable profitability.
As described in the outline of prospects, we expect business to
continue to develop positively due to the stability in the industry
in most regions and the Heidelberg Group's improved cost
structures," he added.
As of March 31, 2007, the Heidelberg Group had a workforce of
19,171 worldwide (previous year: 18,436). This figure includes new
appointments - primarily at Heidelberg production facilities - and,
for the first time, 156 employees from the initial consolidation of
BHS Druck- und Veredelungstechnik GmbH, Weiden, a subsidiary of the
Results in the Press and Postpress divisions:
In the Press Division (offset printing), sales in the
financial year just closed rose by approximately six percent to
3.321 billion Euro. Incoming orders in the period under review
increased by seven percent on the previous year to 3.367 billion
Euro. The operating result for 2006/2007 was 314 million Euro
(previous year: 248 million Euro).
In the Postpress Division (finishing), sales in the period
under review rose by around 12 percent to 445 million Euro.
Incoming orders increased by some nine percent to 449 million Euro.
The operating result of this division for the period under review
was seven million Euro (previous year: loss of three million Euro).
In the EMEA, North America, Latin America and Eastern Europe
regions, sales and incoming orders showed a considerable
improvement on the previous year. In the Asia/Pacific region,
figures fell short of the high levels of the previous year. The
suspension of import duty exemption in China, which took effect
from the second quarter, postponed incoming orders and sales.
At the Annual General Meeting on July 26, 2007, the
Management Board and the Supervisory Board will propose increasing
the dividend from last year's level of 0.65 Euro per share to
0.95 Euro per share for 2006/2007
Prospects for financial year 2007/2008: moderate increase in
sales and net profit roughly equivalent to five percent of sales
During the next three-year period, from 2007/2008 to
2009/2010, the company expects to increase total sales by ten to 15
percent. In the current financial year 2007/2008, Heidelberg
predicts a moderate growth in sales in the run-up to drupa 2008.
In 2006/2007, the year under review, the result of operating
activities included positive one-time effects amounting to around
60 million Euro. In the current financial year 2007/2008,
Heidelberg is looking to increase the pure operating result by ten
to 15 percent compared to the adjusted value for the year under
review of 302 million Euro. This represents a target result of
operating activities for 2007/2008 of 330 million Euro to 345
Also benefiting from the positive effects of the German tax
reform and from internal optimizations to ease the tax burden, the
net profit will continue to grow. Overall, the company predicts an
increase in the net profit - excluding one-time effects - of around
four percent of sales for the year under review to about five
percent in the current financial year 2007/2008.
On November 7, 2006, Heidelberger Druckmaschinen AG began
a second share buyback program which plans up to five percent of
the company's capital stock - a maximum of 4,152,535 shares -
to be repurchased on the stock market by January 2008 at the
latest. By the end of the 2006/2007 financial year, on March 31,
2007, 2,419,422 shares had been bought back through this program.
At the end of the financial year just closed, Heidelberg cancelled
3,322,658 shares from the first and second buyback programs. The
company's capital stock now amounts to 204,103,795.20 Euro and
is divided into 79,728,045 bearer shares.
The Annual General Meeting of Heidelberger Druckmaschinen
AG will be held at the Congress-Center Rosengarten in Mannheim on
July 26, 2007.
The scheduled publication date for the financial statements
for the first quarter of 2007/2008 is August 2, 2007.
For further information, please contact:
Heidelberger Druckmaschinen AG
Tel.: +49 (0)6221 92 47 47
Fax: +49 (0)6221 92 50 69
This Press Information contains statements about future
development that are based on assumptions and estimates by the
management of Heidelberger Druckmaschinen Aktiengesellschaft. Even
if the management is of the opinion that these assumptions and
estimates are accurate, future actual developments and future
actual results may differ significantly from these assumptions and
estimates due to a variety of factors. These factors can include
changes to the overall economic climate, changes to exchange rates
and interest rates and changes in the print media industry.
Heidelberger Druckmaschinen Aktiengesellschaft provides no
guarantee that future developments and the results actually
achieved in the future will agree with the assumptions and
estimates set out in this press release and assumes no liability