Heidelberg Financial Year 2004/2005: Turnaround in Earnings
06/07/2005
Unless otherwise stated, the following information relates to the
continuing operations of the Heidelberg Group. These include the
Press, Postpress and Financial Services divisions. The Digital
Division was sold and deconsolidated on May 1, 2004, the Web
Systems Division on August 6, 2004. The figures for the previous
year have been adjusted to reflect the new segmentation. This now
provides a comparable basis for the stated figures.
Sales of the Heidelberg Group during the period under review grew three percent to 3.207 billion Euro (previous year: 3.114 billion Euro) and by five percent after adjustments for exchange rate movements. Sales of the largest division, the Press Division (offset printing), increased by around five percent to 2.797 billion Euro, or by seven percent after adjustment for exchange rate movements. The free cash flow was well above the previous year at 154 million Euro, and thereby clearly exceeded expectations.
Incoming orders in the financial year just closed were 3.508 billion Euro (previous year: 3.247 billion Euro) and were therefore eight percent higher than last year's figure. The order backlog at March 31, 2005 was noticeably higher than one year ago. It exceeded Euro one billion and, consequently, was almost 300 million Euro higher than at the end of financial year 2003/04.
"The operating profit - including the operating loss from NexPress - improved from Euro ten million to about 160 million Euro," explained Heidelberg's CFO, Dr. Herbert Meyer. "Through the deep restructuring of Heidelberg, we achieved this major improvement in earnings which will have continuing effects." The operating profit of the continuing operations improved by 33 million Euro to 207 million Euro, or around 6.5 percent of sales. The net profit for the Heidelberg Group amounted to 61 million Euro (previous year: minus 695 million Euro). This corresponds to a return on sales after tax of 1.8 percent.
The Management and Supervisory Boards will propose that the Annual General Meeting on July 20, 2005 approves a dividend of 0.30 Euro per share for the year under review.
As of March 31, 2005, the Heidelberg Group had a workforce of 18,679 worldwide (previous year: 22,782). The fall of 18 percent is primarily due to the sale of the Digital and Web Systems divisions.
Results in the Press and Postpress Divisions improved
In the Press Division (offset printing), sales in the financial year just closed rose by approx. five percent to 2.797 billion Euro. Incoming orders in the period under review increased by ten percent on the previous year to around 3.087 billion Euro. The operating profit for 2004/2005 was 183 million Euro (previous year: 151 million Euro).
In the Postpress Division (finishing), sales in the period under review were 348 million Euro. Incoming orders were 359 million Euro. The operating profit in this division improved to minus two million Euro (previous year: minus 18 million Euro).
Sales in all regions were up on the previous year, with the exception of North America. Incoming orders improved on last year's figures in all regions, climbing around eight percent on average.
Heidelberg expands assembly capacity on growth market China
The new production site in China is being constructed this financial year in the "Shanghai Qingpu Industrial Zone" to the west of Shanghai. The appropriate contractual agreements have been signed and the license to trade has already been issued. The factory, which is still to be constructed and is intended to provide 5,000 square meter of production space , is scheduled for completion by the start of 2006. Delivery of the first postpress products is also expected to start at the beginning of 2006.
Employee training and the assembly of the first folders in a temporary building will begin well in advance. Heidelberg is looking to begin manufacturing printing presses in A3 format for the Chinese market as soon as possible after completing the necessary preparatory work.
Heidelberg's total investment volume for the site in China amounts to approx. ten million Euro. The Company plans to increase the workforce at the new site in the medium term to around 200.
Outlook: Sales and earnings for 2005/2006 expected to improve on previous year
The Company expects to see moderate growth in sales for the current financial year 2005/2006 on a comparable basis. At the beginning of the year, the high order backlog will provide a solid foundation for sales growth.
During the current financial year, Heidelberg is planning to surpass the result of operat-ing activities of financial year 2004/2005 of 167 million Euro as well as the after-tax result of 61 million.
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
- Incoming orders climb by eight percent to 3.5 billion Euro
- Net profit of 61 million Euro achieved
- Free cash flow of 154 million Euro well above expectations
- Proposed dividend of 0.30 Euro per share
- Investment in new production site in Shanghai area
- Outlook: Sales and earnings for 2005/2006 expected to improve on previ-ous year
Sales of the Heidelberg Group during the period under review grew three percent to 3.207 billion Euro (previous year: 3.114 billion Euro) and by five percent after adjustments for exchange rate movements. Sales of the largest division, the Press Division (offset printing), increased by around five percent to 2.797 billion Euro, or by seven percent after adjustment for exchange rate movements. The free cash flow was well above the previous year at 154 million Euro, and thereby clearly exceeded expectations.
Incoming orders in the financial year just closed were 3.508 billion Euro (previous year: 3.247 billion Euro) and were therefore eight percent higher than last year's figure. The order backlog at March 31, 2005 was noticeably higher than one year ago. It exceeded Euro one billion and, consequently, was almost 300 million Euro higher than at the end of financial year 2003/04.
"The operating profit - including the operating loss from NexPress - improved from Euro ten million to about 160 million Euro," explained Heidelberg's CFO, Dr. Herbert Meyer. "Through the deep restructuring of Heidelberg, we achieved this major improvement in earnings which will have continuing effects." The operating profit of the continuing operations improved by 33 million Euro to 207 million Euro, or around 6.5 percent of sales. The net profit for the Heidelberg Group amounted to 61 million Euro (previous year: minus 695 million Euro). This corresponds to a return on sales after tax of 1.8 percent.
The Management and Supervisory Boards will propose that the Annual General Meeting on July 20, 2005 approves a dividend of 0.30 Euro per share for the year under review.
As of March 31, 2005, the Heidelberg Group had a workforce of 18,679 worldwide (previous year: 22,782). The fall of 18 percent is primarily due to the sale of the Digital and Web Systems divisions.
Results in the Press and Postpress Divisions improved
In the Press Division (offset printing), sales in the financial year just closed rose by approx. five percent to 2.797 billion Euro. Incoming orders in the period under review increased by ten percent on the previous year to around 3.087 billion Euro. The operating profit for 2004/2005 was 183 million Euro (previous year: 151 million Euro).
In the Postpress Division (finishing), sales in the period under review were 348 million Euro. Incoming orders were 359 million Euro. The operating profit in this division improved to minus two million Euro (previous year: minus 18 million Euro).
Sales in all regions were up on the previous year, with the exception of North America. Incoming orders improved on last year's figures in all regions, climbing around eight percent on average.
Heidelberg expands assembly capacity on growth market China
The new production site in China is being constructed this financial year in the "Shanghai Qingpu Industrial Zone" to the west of Shanghai. The appropriate contractual agreements have been signed and the license to trade has already been issued. The factory, which is still to be constructed and is intended to provide 5,000 square meter of production space , is scheduled for completion by the start of 2006. Delivery of the first postpress products is also expected to start at the beginning of 2006.
Employee training and the assembly of the first folders in a temporary building will begin well in advance. Heidelberg is looking to begin manufacturing printing presses in A3 format for the Chinese market as soon as possible after completing the necessary preparatory work.
Heidelberg's total investment volume for the site in China amounts to approx. ten million Euro. The Company plans to increase the workforce at the new site in the medium term to around 200.
Outlook: Sales and earnings for 2005/2006 expected to improve on previous year
The Company expects to see moderate growth in sales for the current financial year 2005/2006 on a comparable basis. At the beginning of the year, the high order backlog will provide a solid foundation for sales growth.
During the current financial year, Heidelberg is planning to surpass the result of operat-ing activities of financial year 2004/2005 of 167 million Euro as well as the after-tax result of 61 million.
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
