The Heidelberg Group attained a result of operating activities of € 81 million during the third quarter of the current financial year – slightly below the previous year’s figure. Lower sales, negative foreign currency influences, and higher personnel expenses under the collective bargaining agreement had a dampening effect. The Press Division nevertheless benefited from the now higher share of sales of the Speedmaster XL105. We have continued reducing structural costs and also succeeded in slightly trimming research and development costs from the previous year. The operating return on sales in the quarter amounted to 8.7 percent, compared with 3.5 percent in the first and 7.8 percent in the second quarter.
We achieved an overall result of operating activities of € 177 million during the first nine months of the financial year, thereby realizing a nearly 7 percent operating return on sales. The previous year’s figure of € 202 million had included a positive one-time effect generated by the sale of Linotype GmbH.
Influenced by higher outlays due to the generally higher interest rate level,
the financial result for the first three quarters was down from € –41 million
the previous year to
€ –53 million. The decline in financial income is additionally evident because of the effects of derivative financial instruments used in currency hedging. Income before taxes amounts to € 124 million, with the tax rate at 30 percent. In the previous year, during the third quarter we had booked favorable tax income from the corporate income tax credit totaling € 73 million, thereby increasing net profit to € 180 million. Net profit at present amounts to € 87 million in the current financial year. Earnings per share was € 1.11.
Up to December 31, 2007, the Heidelberg Group’s investments in tangible and intangible assets rose to € 146 million – 29 percent over the previous year’s figure. This increase was caused by the new assembly hall 11 at Wiesloch-Walldorf, which has meanwhile begun operations. A large proportion of the overall investment volume of € 45 million has been booked during the first nine months of the current financial year. The new format categories Speedmaster XL145 and Speedmaster XL162 are to be assembled in this hall. Heidelberg has also set up a package printing demonstration center.
During the third quarter, the Heidelberg Group’s total assets rose by a substantial € 124 million from the figure for the previous quarterly reporting date to € 3,588 million as of December 31, 2007.
Among assets, inventories increased further since the end of the previous quarter. Trade receivables also exceeded the figure for September 30, 2007. Cash and cash equivalents were also especially high as of the end of the quarter. Receivables from customer financing developed in the opposite direction, falling by € 75 million due to the sales of portions of portfolios during the quarter.
Among equity and liabilities, shareholders’ equity increased slightly due to the net income for the quarter, amounting to € 1,174 million as of December 31, 2007. The equity ratio continues to total nearly 33 percent. In addition to an increase in trade payables, our financial liabilities were higher as of the quarterly reporting date, amounting to € 766 million.
The Heidelberg Group’s cash flow totaled € 180 million through the end of the third quarter, thereby amounting to 7 percent of sales. The previous year’s figures included non-recurring items from the recognition of the corporate income tax credit.
In the area of other operating changes totaling € –45 million, compared with the previous year we benefited from lower outflows of funds from working capital and a significantly greater inflow of funds from receivables from customer financing.
The outflow of funds from investment activity amounted to € –137 million for the three quarters. The increase over the previous year’s figure by € 55 million results from the greater investment volume due to the construction of Hall 11. Furthermore, the previous year’s figure had been influenced by a high inflow of funds from asset disposals.
Overall, the free cash flow of € –2 million for the first nine months of the financial year is still slightly negative – somewhat below the previous year’s figure. The figure for the third quarter of € 41 million was nevertheless clearly favorable. As in past years we anticipate a further increase during the fourth quarter, as a result of which we are confident of attaining our projected free cash flow quota of 4 percent in terms of sales.
Figures in € millions
|Q1 to Q3
|Q1 to Q3
|Working capital||– 100||– 83|
|Receivables from customer financing||52||102|
|Other||– 120||– 64|
|Other operating changes||– 168||– 45|
|Outflow of funds from investment activity||– 82||– 137|
|– of which: pension funding||– 50||–|
|– of which: inflow of funds from asset disposals||90||23|
|– of which: hall 11||– 9||– 25|
|Free cash flow||12||– 2|