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Sales for fiscal year 2003/2004 at 3.661 billion Euro
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Free cash flow of 114 million Euro much better than predicted
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Operating result in fourth quarter twice that of previous year
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Incoming orders in fourth quarter one billion Euro
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Transfer of the Digital Division to Eastman Kodak Co. concluded on May 1, 2004
Heidelberger Druckmaschinen AG (Heidelberg) concluded the 2003/2004 fiscal year ending March 31, 2004 with sales around 11 percent lower than the previous year in line with expectations. Preliminary figures for sales by the Heidelberg Group were 3.661 billion Euro (previous year: 4.1 billion Euro). Adjusted for currency effects, sales were down six percent. Incoming orders in the fiscal year just closed were around 3.8 billion Euro (previous year: four billion Euro). In the fourth quarter alone, orders were in the region of 1.0 billion Euro.
The preliminary operating result for the period under review was 20 million Euro (previous year: 102 million Euro) which was higher than the predicted break-even result. This primarily resulted from the implemented cost-cutting measures which saved 240 million Euro. In the fourth quarter alone, the operating result improved considerably to 110 million Euro (previous year: 54 million Euro). Despite high non-recurring expenditures for efficiency improvements and restructuring, the free cash flow in 2003/2004 was positive at 114 million Euro, considerably higher than forecast (-100 million Euro). The preliminary result after taxes for the 2003/04 fiscal year was -695 million Euro (previous year: -138 million Euro). This includes non-recurring expenditures to the value of 569 million Euro, mostly for depreciation of book values, for restructuring costs and expenditures in connec-tion with the discontinued Digital and Web Systems operations.
As of March 31, 2004, the Heidelberg Group had a workforce of 22,782 worldwide (previous year: 24,181).
Developments in the various regions and divisions
Sales for fiscal year 2003/2004 in the North America, Latin America, Europe and the Middle East regions were affected by low investment in the industry. Only in the fourth quarter were there signs of a slight improvement in business in these regions. Business in Eastern Europe and Asia/Pacific was pleasing, with sales either improving or remaining at a high level.
The Sheetfed Division concluded the year with a very positive operating result, but despite clear improvements in efficiency was still unable to fully make up the drop in sales of over 14 percent. In all other divisions, the operating result improved.
Kodak contract comes into effect
The contract governing the sale of the Digital Printing operations to Eastman Kodak Co., which was concluded on March 8, 2004, came into effect on May 1, 2004.
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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