Heidelberg Extends Its Market Leadership |
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| 07/04/2000 |
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Heidelberger Druckmaschinen AG (Heidelberg) has successfully concluded its 1999/2000 fiscal year (April 1, 1999 - March 31, 2000). With sales of 4.602 billion Euro, the Heidelberg Group has bettered last year's figures (3.948 billion Euro) by 16.5 percent. Incoming orders were also up 39.3 percent at 4.694 billion Euro (1998/1999 fiscal year: 3.369 billion Euro), achieving an all-time high. "The Heidelberg Group's profit after taxes was 251 million Euro (1998/1999: 256 billion Euro), and thereby reached a very high level despite the expenditure invested in building up digital press business", explained Bernhard Schreier, Chairman of the Management Board. The company will issue a dividend of 1.70 Euro per share for 1999/2000, corresponding to a dividend yield of 2.74 percent.
Heidelberg shares developed well between April 1, 1999 and March 31, 2000, rising from 49.50 Euro to 62.00 Euro. If the dividend paid is taken in account, this represents an increase of 27.7 percent. The MDAX rose 18.4 percent to 4,468 points during the same period. "We expect to double the free-float of our shares to around 30 percent over the next fiscal year", stated Finance Director Dr. Herbert Meyer. He also indicated that discussions were currently underway with major shareholders. After Lahmeyer AG's merger into the parent company RWE, RWE AG has been the majority shareholder (56 percent) of Heidelberg since the end of 1999.
The reorganized Digital division has far exceeded Heidelberg's expectations over recent months, particularly in the field of black/white digital printing. "Our figures show that Heidelberg has succeeded in positioning itself as a solution provider for the entire printing and publishing industry.
We will endeavor to systematically build upon our existing market leadership - with digital printing as a further key pillar of operations", explained Bernhard Schreier. The company recorded a high export rate of 84.6 percent, a slight improvement on last year's figure (82.3 percent). Heidelberg's total workforce increased by 2,618 to 24,177 during the period under review (as of March 31, 2000).
Very successful first quarter - record figures at drupa
The successful conclusion of the 1999/2000 fiscal year was also continued in the first quarter of the current year 2000/2001.
At drupa 2000, the most important fair for the graphic arts industry, Heidelberg received orders with a value in excess of 1.5 billion Euro. This record figure was more than triple the orders received at drupa 1995. For the first time ever, Heidelberg's portfolio at the Dusseldorf fair included complete solutions tailored to the precise needs of its customers.
These included printing presses, but also prepress and postpress products such as software, consumables and services. The highlights of the fair included the NexPress 2100 color digital press and the new Mainstream 80 newspaper press. One of Europe's most renowned newspaper publishers, the British Telegraph Group, ordered no less than seven Mainstream rotary
presses with a total of 263 printing units at drupa. "This order was one of the largest in drupa's history", states Bernhard Schreier. "It shows that we have a leading role to play in the newspaper industry." Over recent months, Heidelberg has consistently implemented its strategy and moved from being a press manufacturer to a complete solution provider for the entire printing and publishing industry.
The company has further optimized its offset printing operations and reinforced its newspaper and digital printing activities. The takeover of 30 percent of the Swiss Gallus Group in September 1999 also strengthened the company's foothold in the important growth sector of flexographic printing.
Brilliant start for Digital
The new Digital division recorded sales of Euro 659 million, and exceeded expectations by 25 percent. More than 1000 units of Heidelberg's first digital black/white press, the Digimaster 9110, have already been sold.
The company aims to achieve a market share of around 20 percent in this product segment within five years. Heidelberg moved into digital color printing when it founded NexPress, a joint venture between Heidelberg and Kodak.
Sheetfed sets a new sales record
Heidelberg was also extremely successful in the sheetfed sector in the 1999/2000 fiscal year, achieving total sales of 2.850 billion Euro, some 8.5 percent up on the previous year. The highest growth rates in sales were recorded in Asia, Central Europe and NAFTA.
Web Systems - successes with Sunday technology
With sales of 695 million Euro, the Web Offset division recorded a nominal growth of three percent during the last fiscal year. A concentration among large printshops meant that customers in North America were holding back temporarily on their purchases.
The division was able to increase its market share, however, in other key markets such as Europe and Asia. In the sector involving the production of catalogs, magazines and supplements, Heidelberg is the world market leader with a share in excess of 40 percent. The innovative Sunday technology plays a key role in Web Systems, being integrated for the first time into the series of new newspaper presses.
Finishing records significant increase in sales
The company's Finishing division saw sales boosted by 71 percent to 398 million Euro during 1999/2000. The growth, adjusted for initial consolidation effects, was 17 percent. Heidelberg succeeded once again in reinforcing its position in what is a virtually stagnant market for folding systems and delivery units - with a market share in excess of 40 percent. Sales increases of just under 50 percent were achieved in the field of gatherer-stitchers, while the company also succeeded in boosting its share of the world market to around 25 percent.
Sales rocket with six regions
More than 240,000 customers worldwide now use Heidelberg products. To provide them with direct, local support, Heidelberg has consistently expanded its sales and service organization over recent years and is now represented in over 170 countries. 42 percent of the group's sales were achieved in the Central Europe Region. With total revenue of 1.9 billion Euro, Heidelberg achieved its best figures ever. Heidelberg Germany and Heidelberg UK were particularly successful, achieving record sales of 676 million Euro and 342 million Euro respectively. In the Eastern Europe Region, Heidelberg Russia and Heidelberg Poland also saw sales climb significantly. The NAFTA region experienced strong growth for 1999/2000, with sales up 27.6 percent to around 1.6 billion Euro. In Central and South America, sales of 111 million Euro were below the previous year's level due to the difficult economic circumstances. High sales in the Web sector meant that Heidelberg do Brasil was nevertheless able to improve on last year's sales figures.
In Asia, Heidelberg was able to utilize the economic recovery in the Asia/Pacific Region and further increase its market share. Heidelberg Japan, for example, saw sales rise by 13 percent to 268 million Euro. Heidelberg China, too, was able to record significant growth. China is Asia's most important growth market and the company is committed to expanding its presence in this region. In the Middle East and Africa Region, most countries were able to follow on the very positive growth in sales in 1998/1999.
The Print Media Academy opens
In the middle of April, Heidelberg celebrated the company's 150th anniversary by opening the Print Media Academy. "This knowledge and training center allows us to provide the entire graphic arts industry with hardware and software, but also with 'brainware'", explains Bernhard Schreier. As we move into the information era, the latest technologies must also be accompanied by appropriate know-how.
A network of academies with facilities in Atlanta, Kuala Lumpur, Tokyo, Moscow, Sao Paulo, Cairo and Shenzhen (China) is ensuring that Heidelberg is also able to provide training courses close to its customers and its various markets.
Further growth forecast for the 2000/2001 fiscal year
Heidelberg forecasts very positive developments for the current fiscal year. The company received a very positive boost from drupa, so that order levels are expected to increase beyond the average rate of economic growth. Group sales in 2000/2001 will be in the region of five billion Euro, with profits for the year up eight to ten percent on the 1999/2000 fiscal year. "First-class high-tech products coupled with Heidelberg's expertise as a solution provider and our worldwide service network mean we will have a distinct competitive advantage in future", explains Bernhard Schreier. According to the Chairman of the Management Board, the print sector will also profit from the electronic media. "Heidelberg will continue to be successful and benefit from opening up new markets and its complete focussing on customer needs."
For further information:
Heidelberger Druckmaschinen AG
Investor Relations
Dirk Kaliebe
Tel: +49 (0)6221 92 60 20
Fax: +49 (0)6221 92 60 61
E-mail:
dirk.kaliebe@heidelberg.com
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Company Profile
Over the course of its more than 150-year history, Heidelberg has grown from a traditional printing press manufacturer to become the world's largest solutions provider for the print media industry. With its seamlessly integrated hardware and software solutions, it has established a commanding lead over other market players. Heidelberg is a one-stop supplier of everything from prepress solutions to a wide range of products for printing and finishing processes, relevant training and accompanying services.
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