Heidelberg Achieves Record Profits in Fiscal Year 2000/2001 - Sales Rise by More than 15 Percent to 5.3 Billion Euro
07/03/2001
Heidelberger Druckmaschinen AG (Heidelberg) has closed the last
2000/2001 fiscal year (April 1, 2000 - March 31, 2001) with record
profits. Sales of the Heidelberg Group rose by more than 15 percent
to 5.3 billion Euro (previous year: 4.6 billion Euro). Orders
received also exhibited pleasing growth in all divisions, standing
at around 5.5 billion Euro. This is more than 18 percent up on the
comparable figure for the highly successful previous year (just
under 4.7 billion Euro), which means that the company has further
extended its leading position in the graphic arts industry.
"In the current fiscal year, we expect Heidelberg to achieve
sales and profits in excess of last year's levels", stated
Bernhard Schreier, Chairman of the Heidelberg Management Board.
The rise in profits in 2000/2001 demonstrates the company's potential for growth. "We have increased our operating profit by around ten percent from 463 million Euro to 506 million Euro", explained Chief Financial Officer Dr. Herbert Meyer. The Heidelberg Group's net profit increased from 251 million Euro to 283 million Euro after adjustment and, after accounting for special influences, totaled 342 million Euro.
The non-recurring item of around 60 million Euro (100 million Euro before tax) relates to the application of new accounting procedures for the treatment of special investment funds. Unlike in previous years, special funds are no longer listed at the historical procurement costs of around 280 million Euro, but instead the stocks, securities, cash and pensions included in the funds are now listed at their market values of around 380 million Euro. The earnings per share rose from 2.91 Euro to 3.30 Euro after adjustment. At the Annual General Meeting, Heidelberg will pro-pose that, in view of the highly favorable 2000/2001 fiscal year, a dividend of 1.80 Euro will be issued - an increase of ten cent on last year's dividend. This corresponds to a net dividend yield of 3.1 percent calculated on the current share price (average 58 Euro).
During the period under review, Heidelberg's total workforce increased by 1,759 to 25,936 (as at March 31, 2001).
High double-figure growth in divisions and regions
In the 2000/2001 fiscal year, sales in all divisions were boosted by a highly favorable economic climate and the high number of orders received at drupa in May 2000.
Digital buoyant
Sales in the Digital division rose by just under 16 percent from 659 million Euro to some 763 million Euro. With more than 2,000 black-and-white digital printing systems already shipped, Heidelberg has now achieved a market share of 17 percent in this sector. The company's goal is to increase this share to 30 percent in the next five years. The operating loss rose from 26 million Euro to 64 million Euro. This is due to the financial outlays required for the development of digital presses and the expansion of the company's sales organization. A further factor was the unfavorable profit development in the prepress sector.
Sheetfed division continues to be successful
The Sheetfed division (sheetfed offset presses) also continued its success story, with sales increasing from 2.8 billion Euro to 3.3 billion Euro - a growth of almost 17 percent. The operating result increased from 491 million Euro to 543 million Euro. Heidelberg's goal is to expand its strong market position in this sector further.
Web Systems division breaks even
Heidelberg's Web Systems division achieved sales of 801 million Euro which, when compared to 695 million Euro last year, represents a growth of more than 15 percent. The operating result reached break-even point, despite the expansion of newspaper press business and following a loss of seven million Euro in 1999/2000.
Finishing set to grow
In the Finishing division, sales rose from 398 million Euro to 408 million Euro. The operating profit climbed from five million Euro to 27 million Euro. Heidelberg is look-ing to achieve stronger growth than the market average in this sector in future.
Global orientation pays off
Heidelberg experienced high demand from all regions. Despite the economic slowdown in the second half of the last fiscal year, sales in the NAFTA region rose by 16 percent to 1.8 billion Euro. In Central Europe, Heidelberg once again reported high sales, achieving a figure of 1.9 billion Euro. The Middle East/Africa, Asia/Pacific and Central & South America regions demonstrated sales growth well in excess of 30 percent compared with last year. Asia/Pacific achieved sales of almost one billion Euro. The highest percentage growth was seen in Eastern Europe, with sales in the region growing by 53 percent to 291 million Euro.
Prospects for the future: Heidelberg looking to achieve sales of eight billion Euro in five years
We are expecting a slight deterioration in economic conditions in the 2001/2002 fiscal year. Growth in the USA will slow down further in the first half of the 2001/2002 fiscal year. However, we are expecting a slight recovery in the second half of the year. China in particular will continue to exhibit strong growth.
"Heidelberg expects to outperform the industry as a whole in 2001/2002, at a time when business is likely to be quite subdued", commented Bernhard Schreier, referring to Heidelberg's prospects for the current fiscal year. "Because of our rigorous positioning as a solutions provider for the entire graphic arts industry, I am highly optimistic that we will be able to achieve a growth in sales running into almost double figures in the years to come", stated Schreier. But this can only be achieved, he added, if there are no unforeseen economic downturns on markets that are relevant to Heidelberg. In five years, Schreier predicts sales of around eight billion Euro for the Heidelberg Group. "We will achieve this by developing new products and by extending our market shares in all divisions".
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
The rise in profits in 2000/2001 demonstrates the company's potential for growth. "We have increased our operating profit by around ten percent from 463 million Euro to 506 million Euro", explained Chief Financial Officer Dr. Herbert Meyer. The Heidelberg Group's net profit increased from 251 million Euro to 283 million Euro after adjustment and, after accounting for special influences, totaled 342 million Euro.
The non-recurring item of around 60 million Euro (100 million Euro before tax) relates to the application of new accounting procedures for the treatment of special investment funds. Unlike in previous years, special funds are no longer listed at the historical procurement costs of around 280 million Euro, but instead the stocks, securities, cash and pensions included in the funds are now listed at their market values of around 380 million Euro. The earnings per share rose from 2.91 Euro to 3.30 Euro after adjustment. At the Annual General Meeting, Heidelberg will pro-pose that, in view of the highly favorable 2000/2001 fiscal year, a dividend of 1.80 Euro will be issued - an increase of ten cent on last year's dividend. This corresponds to a net dividend yield of 3.1 percent calculated on the current share price (average 58 Euro).
During the period under review, Heidelberg's total workforce increased by 1,759 to 25,936 (as at March 31, 2001).
High double-figure growth in divisions and regions
In the 2000/2001 fiscal year, sales in all divisions were boosted by a highly favorable economic climate and the high number of orders received at drupa in May 2000.
Digital buoyant
Sales in the Digital division rose by just under 16 percent from 659 million Euro to some 763 million Euro. With more than 2,000 black-and-white digital printing systems already shipped, Heidelberg has now achieved a market share of 17 percent in this sector. The company's goal is to increase this share to 30 percent in the next five years. The operating loss rose from 26 million Euro to 64 million Euro. This is due to the financial outlays required for the development of digital presses and the expansion of the company's sales organization. A further factor was the unfavorable profit development in the prepress sector.
Sheetfed division continues to be successful
The Sheetfed division (sheetfed offset presses) also continued its success story, with sales increasing from 2.8 billion Euro to 3.3 billion Euro - a growth of almost 17 percent. The operating result increased from 491 million Euro to 543 million Euro. Heidelberg's goal is to expand its strong market position in this sector further.
Web Systems division breaks even
Heidelberg's Web Systems division achieved sales of 801 million Euro which, when compared to 695 million Euro last year, represents a growth of more than 15 percent. The operating result reached break-even point, despite the expansion of newspaper press business and following a loss of seven million Euro in 1999/2000.
Finishing set to grow
In the Finishing division, sales rose from 398 million Euro to 408 million Euro. The operating profit climbed from five million Euro to 27 million Euro. Heidelberg is look-ing to achieve stronger growth than the market average in this sector in future.
Global orientation pays off
Heidelberg experienced high demand from all regions. Despite the economic slowdown in the second half of the last fiscal year, sales in the NAFTA region rose by 16 percent to 1.8 billion Euro. In Central Europe, Heidelberg once again reported high sales, achieving a figure of 1.9 billion Euro. The Middle East/Africa, Asia/Pacific and Central & South America regions demonstrated sales growth well in excess of 30 percent compared with last year. Asia/Pacific achieved sales of almost one billion Euro. The highest percentage growth was seen in Eastern Europe, with sales in the region growing by 53 percent to 291 million Euro.
Prospects for the future: Heidelberg looking to achieve sales of eight billion Euro in five years
We are expecting a slight deterioration in economic conditions in the 2001/2002 fiscal year. Growth in the USA will slow down further in the first half of the 2001/2002 fiscal year. However, we are expecting a slight recovery in the second half of the year. China in particular will continue to exhibit strong growth.
"Heidelberg expects to outperform the industry as a whole in 2001/2002, at a time when business is likely to be quite subdued", commented Bernhard Schreier, referring to Heidelberg's prospects for the current fiscal year. "Because of our rigorous positioning as a solutions provider for the entire graphic arts industry, I am highly optimistic that we will be able to achieve a growth in sales running into almost double figures in the years to come", stated Schreier. But this can only be achieved, he added, if there are no unforeseen economic downturns on markets that are relevant to Heidelberg. In five years, Schreier predicts sales of around eight billion Euro for the Heidelberg Group. "We will achieve this by developing new products and by extending our market shares in all divisions".
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
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. More
