-
Incoming orders after nine months approximately EUR 2
billion
-
Sales after nine months approximately EUR 1.8 billion
-
Net financial debt still at low level
-
"FOCUS 2012" aims to deliver operating result of around EUR
150 million in financial year 2013/2014
-
Growth opportunities from drupa 2012 through consistent
focus on customer requirements and market trends
-
Heidelberg benefits from increasing demand in packaging
printing segment
In the third quarter of financial year 2011/2012 (October 1 to
December 31, 2011), Heidelberger Druckmaschinen AG (Heidelberg)
achieved a slightly positive result of operating activities with
stable sales. The "FOCUS 2012" efficiency program was adopted in
January 2012. The aim is to ensure that the target operating result
excluding special items of around EUR 150 million is achieved in
financial year 2013/2014.
Incoming orders in the first nine months (April 1 to
December 31, 2011) amounted to EUR 1.975 billion, 7 percent down on
the previous year's figure for the same period (EUR 2.120 billion).
The Heidelberg Group's
order backlog at the end of the third quarter amounted to
EUR 728 million, which was on a par with the previous quarter (EUR
731 million).
Sales in the first nine months amounted to EUR 1.811
billion, 4 percent down on the previous year's figure for the same
period (EUR 1.883 billion). After adjustment for exchange rate
effects, sales were almost on a par with the previous year's level
at EUR 1.841 billion.
"The economic uncertainty and the resultant reluctance to
invest have impacted on the business operations of Heidelberg as
expected," said Heidelberg CEO Bernhard Schreier. "Nevertheless,
consistent cost management has ensured that the operating result in
the third quarter is positive and on the whole in line with the
scaled-down expectations."
Despite lower sales revenues, the
result of operating activities excluding special items after
nine months has improved to EUR -19 million (previous year: EUR -26
million). The special items amounting to EUR 10 million mainly
consisted of expenditure relating to further restructuring.
Thanks to successful refinancing and lower financing costs,
the
financial result improved significantly on the previous year
from EUR -103 million to EUR -62 million. The
result before taxes for the first nine months improved from
EUR -103 million in the same period the previous year to EUR -91
million. After three quarters, the shortfall for the current
financial year is EUR -79 million (previous year: EUR -78 million).
The
free cash flow for the first nine months was negative at EUR
-23 million. This is primarily a result of the annual loss and
investments in the expansion of our plant in China. The company's
net financial debt fell again slightly after three quarters
to the comparatively low figure of EUR 273 million. The
equity ratio remained stable at almost 30 percent during the
period under review.
"Heidelberg is on a stable financial footing thanks to
successful refinancing and systematic asset management," said
Heidelberg CFO Dirk Kaliebe. "The success of our financial measures
is reflected in the consistently stable equity ratio and
significantly reduced net financial debt."
As of December 31, 2011, Heidelberg had a
workforce of 15,666 worldwide (previous year: 15,828).
Business results in the divisions and regions
The incoming orders of the
Heidelberg Services division improved in the third quarter
to EUR 277 million, up on the previous quarters. Compared with the
equivalent nine months of the previous year, incoming orders were 5
percent below the previous year's good figure at EUR 792 million.
In the same period, the division's sales dropped by 5 percent to
EUR 769 million. The main reason for this development was the drop
in sales in the remarketed equipment business. In the
Heidelberg Equipment division, incoming orders for the first
three quarters totaled EUR 1.172 billion. This was 8 percent down
on the previous year, which was boosted by the IPEX and ExpoPrint
trade shows. Nine-month sales of EUR 1.031 billion were equivalent
to the same period the previous year after adjusting for exchange
rate effects.
The order situation at Heidelberg continues to vary from
region to region. While incoming orders in the Europe, Middle East
and Africa (EMEA), South America, and Asia/Pacific regions lay
below last year's high level after three quarters resulting from
trade shows, the Eastern Europe and North America
regions improved on the previous year's levels. Sales in the
North America region were up significantly on the previous year's
weak figure. Sales in the Asia/Pacific and South America regions in
the period under review were on a par with the high level of the
previous year after adjustment for exchange rate effects, while the
Europe, Middle East and Africa and Eastern Europe regions were down
on the previous year.
Outlook for financial year 2011/2012
In an endeavor to increase operating profitability in the
current financial year, measures relating to material costs and
staffing that can be implemented quickly were already introduced in
the first six months of the year. The company expects that the
operating result excluding special items for financial year
2011/2012 as a whole will be noticeably better than that of the
previous year. Although weak demand means it will take longer than
originally planned to increase sales to more than EUR 3 billion,
Heidelberg is sticking to its medium-term profitability targets.
Back to sustainable profitability with "FOCUS 2012"
To achieve the profitability targets, "FOCUS 2012" is
designed to help realize total sustainable savings of around EUR
180 million in financial year 2013/2014. Many of the measures will
be initiated and implemented quickly, before the end of calendar
year 2012. In addition, the program includes a number of medium- to
long-term measures aimed at adapting the organization to the
changed structures.
Negotiations between the Management Board and employee
representatives on the implementation of "FOCUS 2012" began in
January 2012. The company is focusing first and foremost on the
rapid agreement and implementation of the program in the interests
of everyone involved.
"FOCUS 2012" is our answer to the changes in our industry and
will put in place the foundation and efficient structures needed
for profitable business development in the long term," said
Schreier. "Our aim is to ensure that the target operating result of
around EUR 150 million is achieved in financial year 2013/2014 as
planned and that Heidelberg can independently continue to build on
its leading position in the future."
Growth opportunities from drupa 2012 through consistent focus on
customer requirements and market trends
The structural changes taking place in the media and
communications markets are presenting new challenges for the entire
print industry. Heidelberg has therefore geared its portfolio to
the changing customer requirements and most important market trends
in the print industry. The aim is to further expand the company's
range of high-quality and environmentally friendly consumables to
enable further growth in this market segment in the future. The new
Speedmaster CX 102 is another example of this consistent focus on
growth areas in the print media industry. Customers in the
industrial advertising and packaging printing sectors warmly
welcome this press in order to meet the market trends for maximum
productivity, economic success, and optimum energy efficiency. The
popularity of this press is reflected in the sales figures. The
1,000th printing unit for the Speedmaster CX 102 was sold within
just one year of it being launched at the IPEX trade show in 2010.
"The success of the Speedmaster CX 102 demonstrates our
ability, as the global technological and market leader, to offer
our customers processes that have been optimized from a business
management perspective and solutions for innovative business
models," explained Schreier. "At drupa 2012, our latest products
will be geared towards the growth areas in the print media
industry. As the biggest exhibitor at the trade show, we also see
drupa as an opportunity to boost confidence in our industry once
more."
For additional details and further information about the
company, please visit press portal of Heidelberger Druckmaschinen
AG at
www.heidelberg.com.
Important date:
The
drupa press conference for the business press will take
place on May 2, 2012 at 12 noon in Hall 1 at the Exhibition Center
in Düsseldorf.
For further information, please contact:
Heidelberger Druckmaschinen AG
Corporate Public Relations
Thomas Fichtl
Phone: +49 (0)6221 92 5900
Fax: +49 (0)6221 92 5069
E-Mail:
thomas.fichtl@heidelberg.com
Heidelberg at drupa 2012
drupa 2012, the world's largest trade show for the
print media and printing industry, is being held from May 3 to 16
in Düsseldorf. Since drupa first started in 1951, Heidelberg
has traditionally been the largest exhibitor.
The trade show presentation, held under the banner "Discover
HEI", will center on lean production (HEI Productivity), green
printing (HEI Eco), web-to-print (HEI Integration), short-run
printing (HEI Flexibility), differentiation through coatings and
special effects (HEI Emotions), the future of packaging printing
(HEI End), and gaining an edge through the latest know-how (HEI
School). The company is exhibiting solutions that enable print
shops and postpress businesses to meet the latest market
requirements in full.
www.drupa.heidelberg.com
Important note:
This press release contains forward-looking statements
based on assumptions and estimations by the Management Board of
Heidelberger Druckmaschinen Aktiengesellschaft. Even though the
Management Board is of the opinion that those assumptions and
estimations are realistic, the actual future development and
results may deviate substantially from these forward-looking
statements due to various factors, such as changes in the
macro-economic situation, in the exchange rates, in the interest
rates and in the print media industry. Heidelberger Druckmaschinen
Aktiengesellschaft gives no warranty and does not assume liability
for any damages in case the future development and the projected
results do not correspond with the forward-looking statements
contained in this press release.
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