After nine months of financial year 2012/2013 (April 1 to December
31, 2012), Heidelberger Druckmaschinen AG (Heidelberg) is on track
to achieve its operating targets for the current financial year.
In the quarter under review (October 1 to December 31, 2012),
higher sales and savings from the Focus 2012 efficiency program
resulted in a much improved operating result as planned.
were 9 percent up on the same period of the
previous year, increasing from EUR 631 million to EUR 688 million.
operating result (EBIT)
excluding special items
increased by EUR 23 million to EUR
25 million (previous year: EUR 2 million).
Improvements in EBIT and the financial result led to a
income before taxes
of EUR 5 million after a negative result
of EUR -25 million in the same quarter of the previous year. Thanks
to positive tax effects in the reporting period, the
rose to EUR 16 million (previous year: EUR -14
"The financial year is going according to plan. The third
quarter reflects the progress we had expected in terms of earnings.
We are systematically moving toward our target of returning to
profitability by the end of financial year 2013/2014. We are on the
right track," said Heidelberg CEO Gerold Linzbach.
Sound financing structure - clearly positive free cash flow
Due to the improved result and consistent asset
management, the company recorded a clearly positive
free cash flow
of EUR 28 million in the third quarter, which
is EUR 32 million up on the previous year. Also in the third
net financial debt
fell by EUR 32 million compared with the
previous quarter to EUR 325 million (balance sheet date December
31, 2012). As expected, the net financial debt was higher than at
the end of the previous financial year (when it was EUR 243
million) due to the greater need for funds to process the orders
received at the drupa trade show and the payments relating to Focus
2012. The company's financing structure still shows appropriate
diversification in terms of both financing sources and maturity
profile. Heidelberg therefore has a stable liquidity framework
providing ample room for maneuver.
"The Focus 2012 efficiency program is progressing according
to plan and is significantly improving our profitability. We have
also made good progress with further reducing the company's
debt. The clearly positive free cash flow shows we are definitely
heading in the right direction," said Heidelberg CFO Dirk Kaliebe.
Nine-month figures in line with planning
In the first nine months,
were 5 percent up on the same period of the
previous year at EUR 1,905 million (previous year: EUR 1,811
As expected, the
operating result (EBIT) excluding special items
months was still negative at EUR -32 million. When comparing this
with the figure for the same period of the previous year (EUR -19
million), it is essential to take into account the high
non-recurring costs for the drupa trade show in May 2012.
totaling EUR 24 million after nine months were
primarily the result of expenditure relating to the Focus 2012
efficiency program. At EUR -55 million, the negative impact of the
was EUR 7 million less than in the previous
income before taxes
after three quarters thus remained
negative at EUR -111 million (previous year: EUR -91 million).
Thanks to positive tax effects, the
for the period under review was EUR -88 million
(previous year: EUR -79 million).
As a result of the drupa trade show in May 2012,
after nine months rose 12 percent, from EUR
1,975 million to EUR 2,203 million. The
remained unchanged year on year at EUR 728
As of December 31, 2012, Heidelberg had a
of 14,563 worldwide (previous year: 15,666). This
headcount has fallen by around 1,100 in the past year.
Outlook for financial years 2012/2013 and 2013/2014 confirmed
Heidelberg continues to assume that there will be a
clearly positive result of activities excluding special items for
year 2012/2013 as a whole
. Over one-third of the planned
savings from Focus 2012 will already take effect in the current
financial year. The expenditures required for this purpose,
however, will negatively impact the financial result and the free
cash flow in both the current and the forthcoming financial year.
Net financial debt will increase year-on-year in the current
financial year 2012/2013.
In the coming financial year 2013/2014, the cost reductions
resulting from FOCUS 2012 will be fully effective for the first
time and result in annual savings of around EUR 180 million. The
half-year forecast of achieving a net profit for the year remains
"We are well aware that a one-time cost-cutting program such
as Focus 2012 alone cannot safeguard the future of Heidelberg. Just
like our successful customers, we must be dynamic in focusing our
portfolio on profitable segments. We will ensure this through our
organization based on business areas. Focus 2012 is highlighting
potential for making our structures and processes more efficient on
an ongoing basis. We can't fight changes in the industry, so we
need to respond quickly and harness the opportunities they
present," said Linzbach.
The full press release with additional details can be found
The full report on the third quarter of financial year
2012/2013, further information about the company, and image
material are available at
Further information for journalists:
Heidelberger Druckmaschinen AG
Corporate Public Relations
Phone: +49 (0)6221 92-5900
Fax: +49 (0)6221 92-5069
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.