Heidelberg Financial Year 2005/2006: Earnings Power Continues to Increase
06/07/2006
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. All figures for the previous year mentioned in this press
information have been adjusted to ensure that the figures stated
provide a basis for comparison.
Sales by the Heidelberg Group during the period under review grew twelve percent to 3.586 billion Euro (previous year: 3.207 billion Euro).
Incoming orders in the financial year ending March 31, 2006 were 3.605 billion Euro (previous year, including orders received at drupa: 3.508 billion Euro) and were therefore around three percent higher than last year's already high figure and well above expectations. At around one billion Euro, the order backlog at March 31, 2006 was on a par with the previous year's very high figures.
In the period under review, the Heidelberg Group improved the previous year's operating
result by 31 percent to 277 million Euro (continuing operations previous year: 211 million Euro). This produced an EBIT yield of 7.7 percent of sales in line with expectations. At 135 million Euro, net profit more than doubled in comparison to the previous year (previous year, including discontinuing operations: 59 million Euro). This corresponds to a return on sales after tax of 3.8 percent. At 149 million Euro, free cash flow was above expectations - and already included the transfer of pension funding provisions amounting to 124 million Euro. "We expect the positive trend in the print media industry to continue for 2006," said Dr. Herbert Meyer, the company's CFO. "The new financial year got off to a very satisfying start, thanks to positive trade show activity at Ipex in April and several large orders from Asia. We anticipate further increases in sales and operating result for the full financial year 2006/2007."
As of March 31, 2006, the Heidelberg Group had a workforce of 18,716 worldwide (previous year: 18,679).
Results in the Press and Postpress Divisions
In the Press Division (offset printing), sales in the financial year just closed rose by approx. 12 percent to 3.142 billion Euro. Incoming orders in the period under review increased by two percent on the previous year to around 3.146 billion Euro. The operating profit for 2005/2006 was 248 million Euro (previous year: 187 million Euro).
In the Postpress Division (finishing) sales in the period under review rose by around 14 percent to 398 million Euro. Incoming orders increased by 15 percent to 413 million Euro. The division's operating result for the period under review was minus three million Euro (previous year: minus two million Euro). The operating result in the Postpress Division was burdened by a one-off goodwill depreciation of 6.5 million Euro which did not affect payments.
Sales in all regions were up on the previous year. Incoming orders also grew, except in the Eastern Europe and North America regions.
Proposed dividend doubles to 0.65 Euro per share
The Management Board and the Supervisory Board will be proposing to the Annual General Meeting on July 20, 2006 that a dividend of 0.65 Euro per share - double the amount for the previous year - be paid for financial year 2005/2006.
Prospects for financial year 2006/2007: Expected growth in sales of around five percent, operating result set to be around ten percent of sales
For financial year 2006/2007, the company expects growth in sales of around five percent on financial year 2005/2006. Heidelberg plans to boost the result of operating activities to around ten percent of sales in the current financial year.
Other dates:
The Annual General Meeting of Heidelberger Druckmaschinen AG will be held at the Congress-Center Rosengarten in Mannheim, Germany, on July 20, 2006.
The scheduled publication date for the annual accounts for the first quarter of 2006/2007 is August 1, 2006.
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
- Sales up 12 percent to 3.586 billion Euro
- Operating result 277 million Euro, or 7.7 percent of sales
- Net profit more than doubled to 135 million Euro
- Proposed dividend of 0.65 Euro per share more than doubled
- Prospects for 06/07: Expected increase in sales of around five percent and operating result of around ten percent of sales
Sales by the Heidelberg Group during the period under review grew twelve percent to 3.586 billion Euro (previous year: 3.207 billion Euro).
Incoming orders in the financial year ending March 31, 2006 were 3.605 billion Euro (previous year, including orders received at drupa: 3.508 billion Euro) and were therefore around three percent higher than last year's already high figure and well above expectations. At around one billion Euro, the order backlog at March 31, 2006 was on a par with the previous year's very high figures.
In the period under review, the Heidelberg Group improved the previous year's operating
result by 31 percent to 277 million Euro (continuing operations previous year: 211 million Euro). This produced an EBIT yield of 7.7 percent of sales in line with expectations. At 135 million Euro, net profit more than doubled in comparison to the previous year (previous year, including discontinuing operations: 59 million Euro). This corresponds to a return on sales after tax of 3.8 percent. At 149 million Euro, free cash flow was above expectations - and already included the transfer of pension funding provisions amounting to 124 million Euro. "We expect the positive trend in the print media industry to continue for 2006," said Dr. Herbert Meyer, the company's CFO. "The new financial year got off to a very satisfying start, thanks to positive trade show activity at Ipex in April and several large orders from Asia. We anticipate further increases in sales and operating result for the full financial year 2006/2007."
As of March 31, 2006, the Heidelberg Group had a workforce of 18,716 worldwide (previous year: 18,679).
Results in the Press and Postpress Divisions
In the Press Division (offset printing), sales in the financial year just closed rose by approx. 12 percent to 3.142 billion Euro. Incoming orders in the period under review increased by two percent on the previous year to around 3.146 billion Euro. The operating profit for 2005/2006 was 248 million Euro (previous year: 187 million Euro).
In the Postpress Division (finishing) sales in the period under review rose by around 14 percent to 398 million Euro. Incoming orders increased by 15 percent to 413 million Euro. The division's operating result for the period under review was minus three million Euro (previous year: minus two million Euro). The operating result in the Postpress Division was burdened by a one-off goodwill depreciation of 6.5 million Euro which did not affect payments.
Sales in all regions were up on the previous year. Incoming orders also grew, except in the Eastern Europe and North America regions.
Proposed dividend doubles to 0.65 Euro per share
The Management Board and the Supervisory Board will be proposing to the Annual General Meeting on July 20, 2006 that a dividend of 0.65 Euro per share - double the amount for the previous year - be paid for financial year 2005/2006.
Prospects for financial year 2006/2007: Expected growth in sales of around five percent, operating result set to be around ten percent of sales
For financial year 2006/2007, the company expects growth in sales of around five percent on financial year 2005/2006. Heidelberg plans to boost the result of operating activities to around ten percent of sales in the current financial year.
Other dates:
The Annual General Meeting of Heidelberger Druckmaschinen AG will be held at the Congress-Center Rosengarten in Mannheim, Germany, on July 20, 2006.
The scheduled publication date for the annual accounts for the first quarter of 2006/2007 is August 1, 2006.
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
Important Note
This press release contains forward-looking statements based on assumptions and estimations by the Management Board of Heidelberger Druckmaschinen Aktiengesellschaft. Even though the Management Board is of the opinion that those assumptions and estimations are realistic, the actual future development and results may deviate substantially from these forward-looking statements due to various factors, such as changes in the macro-economic situation, in the exchange rates, in the interest rates and in the print media industry. Heidelberger Druckmaschinen Aktiengesellschaft gives no warranty and does not assume liability for any damages in case the future development and the projected results do not correspond with the forward-looking statements contained in this press release.
This press release contains forward-looking statements based on assumptions and estimations by the Management Board of Heidelberger Druckmaschinen Aktiengesellschaft. Even though the Management Board is of the opinion that those assumptions and estimations are realistic, the actual future development and results may deviate substantially from these forward-looking statements due to various factors, such as changes in the macro-economic situation, in the exchange rates, in the interest rates and in the print media industry. Heidelberger Druckmaschinen Aktiengesellschaft gives no warranty and does not assume liability for any damages in case the future development and the projected results do not correspond with the forward-looking statements contained in this press release.
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