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Order intake and sales at prior-year level after nine months – persistently difficult market environment impacts profitability in Q3 and full year 2019/20

01/20/2020

  • Operating result slightly improved in 3rd quarter due to one-off income
  • Sales and operating result forecast for the full year 2019/20 adjusted due to increasingly difficult conditions
  • Package of measures underway to significantly increase future profitability

In the first nine months (April 1 to December 31, 2019) of financial year 2019/20, Heidelberger Druckmaschinen AG (Heidelberg) recorded stable development in total sales and incoming orders. However, the persistently difficult market environment led to a decline in sales and operating profit in the third quarter.

At EUR 1,900 million after nine months, order intake was on a par with the previous year (previous year: EUR 1,912 million). At EUR 636 million, incoming orders in the third quarter were up on the previous year's figure of EUR 606 million. Order volumes increased in China and the USA in particular, while business in Germany and other parts of Europe remains weak. At EUR 1,690 million after nine months of the fiscal year, sales were still at the previous year's level (previous year: EUR 1,693 million). However, sales in the third quarter of the current fiscal year were lower than expected at EUR 567 million due to the reluctance to invest in Germany, Great Britain and the rest of Central Europe as a result of the economic situation, and were below the previous year's figure of EUR 579 million.

EBITDA excluding the restructuring result was EUR 47 million in the third quarter (October 1 to December 31, 2019), compared with EUR 39 million in the prior-year quarter. The third quarter of the current fiscal year includes a positive one-time gain of around EUR 25 million from the sale of Hi-Tech Coatings. The lower volume, pressure on margins in the trading business with consumables and regional shifts with a less favorable product mix had a particularly negative impact. At the same time, high upfront investments in the area of digital printing still faced insufficient sales. The cost-cutting measures already initiated were not yet able to compensate for this development.

In the first nine months, EBITDA excluding the restructuring result was EUR 117 million, compared to EUR 101 million in the previous year. Accordingly, the pre-tax result was slightly positive at around EUR 5 million (previous year EUR 1 million), while the result after taxes was slightly negative at EUR –10 million (previous year EUR –2 million). Free cash flow improved after nine months, including the sale of Hi-Tech Coatings, to EUR –73 million (previous year: EUR –120 million).

Sales and operating result forecast for the entire year 2019/20 adjusted due to increasingly difficult conditions
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robin_karpp

Robin Karpp
Head of Investor Relations and Group Communications Tel.: +49 (0)6222 82 67120
Fax.: +49 (0)6222 82 67129

Thomas_Fichtl

Thomas Fichtl
Head of Corporate Public Relations and Press Officer Tel.: +49 (0)6222 82 67123
Fax.: +49 (0)6222 82 67129

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