Heidelberg Achieves Record Profits in Fiscal Year 00/01 – Sales Rise by More than 15 Percent to 5.3 Billion Euro
07/03/2001
Successful start to the year - company expects sales and
profits to be above last year's figures
Heidelberger Druckmaschinen AG (Heidelberg) has closed the last 2000/2001 fiscal year (April 1, 2000 to 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 10 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 propose that, in view of the highly favorable 2000/2001 fiscal year, a dividend of 1.80 Euro will be issued - an increase of 10 cents 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/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 7 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 5 million Euro to 27 million Euro. Heidelberg is looking 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 1 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 Euro 8 billion 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 8 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
Corporate Communications
Thomas Fichtl
Tel.: +49 (0)6221 92 47 47
Fax: +49 (0)6221 92 50 69
E-Mail: thomas.fichtl@heidelberg.com
Heidelberger Druckmaschinen AG (Heidelberg) has closed the last 2000/2001 fiscal year (April 1, 2000 to 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 10 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 propose that, in view of the highly favorable 2000/2001 fiscal year, a dividend of 1.80 Euro will be issued - an increase of 10 cents 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/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 7 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 5 million Euro to 27 million Euro. Heidelberg is looking 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 1 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 Euro 8 billion 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 8 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
Corporate Communications
Thomas Fichtl
Tel.: +49 (0)6221 92 47 47
Fax: +49 (0)6221 92 50 69
E-Mail: thomas.fichtl@heidelberg.com
Important note
This Press Information contains statements about future development that are based on assumptions and estimates by the management of Heidelberger Druckmaschinen Aktiengesellschaft. Even if the management is of the opinion that these assumptions and estimates are accurate, future actual developments and future actual results may differ significantly from these assumptions and estimates due to a variety of factors. These factors can include changes to the overall economic climate, changes to exchange rates and interest rates and changes in the graphic arts industry. Heidelberger Druckmaschinen Aktiengesellschaft provides no guarantee that future developments and the results actually achieved in the future will agree with the assumptions and estimates set out in this press release and assumes no liability for such.
This Press Information contains statements about future development that are based on assumptions and estimates by the management of Heidelberger Druckmaschinen Aktiengesellschaft. Even if the management is of the opinion that these assumptions and estimates are accurate, future actual developments and future actual results may differ significantly from these assumptions and estimates due to a variety of factors. These factors can include changes to the overall economic climate, changes to exchange rates and interest rates and changes in the graphic arts industry. Heidelberger Druckmaschinen Aktiengesellschaft provides no guarantee that future developments and the results actually achieved in the future will agree with the assumptions and estimates set out in this press release and assumes no liability for such.
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