The Management Board of Heidelberger Druckmaschinen AG (Heidelberg)
presented its 2002/2003 Annual Report at today's Annual Press
Conference and also confirmed respectively released more details
relating to the preliminary figures for the last fiscal year (April
1, 2002 to March 31, 2003) published in April this year.
Sales by the Heidelberg Group were around 4.1 billion Euro
(previous year: 5 billion Euro). Incoming orders in the last fiscal
year were about 4 billion Euro (previous year: almost 4.6 billion
Euro). "Heidelberg's business was also affected by the ongoing
economic downturn. The Digital and Web Systems Divisions were
particularly affected, and the Sheetfed Division also suffered as a
result of weak markets, especially in the USA and Germany", stated
Bernhard Schreier, CEO of Heidelberger Druckmaschinen AG, and
added: "We were able to compensate only partially for the downturns
in the key markets through positive developments in other regions."
The operating profit for the period under review was 102
million Euro (previous year: 356 million Euro). The net result was
138 million Euro (previous year: 201 million Euro). This includes
non-recurring expenditures of 210 million Euro before taxes for the
efficiency-enhancing program begun in the year under review. The
profit before taxes excluding the one-off effect was 46 million
Because of the loss, the Management Board and the Supervisory
Board will propose at the Annual General Meeting on September 12,
2003 that no dividend be paid for the year under review.
Comprehensive efficiency-enhancing program approved in 2002
The earnings power of the Heidelberg Group will be restored
in the short- and medium-term through sustainable improvements in
the cost structure. To this end, the Management Board last year
agreed an efficiency-enhancing program which, once all measures
have been concluded, will deliver annual savings of around 280
million Euro. "Heidelberg has made substantial progress in
implementing the program. We are already seeing the first
improvements in all key cost components. By the end of the fiscal
year we will have achieved our goals to reduce structural costs",
stated Dr. Herbert Meyer, CFO at Heidelberg.
As a result of the measures, the company will have reduced
staffing levels worldwide by the end of the current fiscal year by
a total of 3,200.
Reduction in capacity already begun By the end of March 2003,
Heidelberg had already reduced its staffing levels by around 1,700
In the Web Systems Division, some 700 jobs have been cut at
the three overseas sites. At the Sheetfed sites in Wiesloch,
Amstetten and Brandenburg, short-time work and an agreement to
safeguard jobs have been introduced in the production and
production-related sectors. This will reduce the working week to
31.5 hours. This agreement will be valid until the end of October
2003. Other cuts in Germany include losses at the Heidelberg site,
where around 100 jobs will be cut in administration and around 190
jobs will be affected in marketing by optimizing sales structures.
Site relocations on schedule - workflows are being optimized
In the USA, the operations in Dayton have been relocated in
their entirety to Durham. Heidelberg expects that this will deliver
synergies in the Web Systems and Postpress Divisions. The projects
in Germany are in the implementation phase. These include the
closure of Mühlhausen, the relocation of NexPress production
operations from Kiel to Rochester, USA, and the relocation of
platesetters to Wiesloch. "We are currently unable to rule out
other site consolidations and closures in Heidelberg's global
production network. Heidelberg is currently streamlining and
optimizing workflows in the administrative sections, divisions and
sales units worldwide," stated Bernhard Schreier.
Start to fiscal 2003/2004 restrained
The continuing reticence to invest among industrial printers
in virtually all markets, but in particular in the key markets USA
and Germany, does not suggest that any sustained revival in demand
can be expected over the current fiscal year. Heidelberg believes
that demand is more likely to weaken further in the key markets.
This is borne out by the first two months (April and May) of
the new fiscal year. Preliminary sales by the Heidelberg Group for
this period were around 426 million Euro (previous year: 541
million Euro). Incoming orders were 486 million Euro (previous
year: 767 million Euro). The comparative figure for the previous
year was, however, boosted by the IPEX trade show in Birmingham,
UK, in April 2002.
Heidelberg's goal during the current fiscal year - in which
it will have an improved cost structure - is to achieve break-even,
even if sales decline further by up to 10 percent. Notwithstanding
possibly weaker overall demand, the company aims to move the
loss-generating areas visibly closer towards a break-even level.
Our goal is for both the Digital and Web Systems Division as well
as Postpress to attain a break-even or favorable result in fiscal
year 2004/2005. The current economic climate does not allow
concrete sales and profit forecasts for the current fiscal year.
"The measures we have implemented to improve our cost structure
have created a basis for us to return to our usual high levels of
profit, even if markets are unstable," stated Bernhard Schreier.
The table with the figures and further information are
available on the Press Lounge at
For further information:
Heidelberger Druckmaschinen AG
Tel.: +49 (0)6221 92 47 47
Mobile: +49 (0)173 318 69 47