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Financial year 2008/2009 - Heidelberg presents final first-quarter figures
- Incoming orders 23 percent up at EUR 1.151 billion thanks to drupa; order backlog climbs from EUR 874 million to EUR 1.298 billion
- Sales down on previous year's level at EUR 657 million
- Operating result falls to EUR -35 million
In the first quarter of financial year 2008/2009, Heidelberger Druckmaschinen AG (Heidelberg) recorded a significant improvement in incoming orders over the previous year thanks to industry trade show drupa. In the period under review, the Heidelberg Group increased its incoming orders by around 23 percent over the same quarter the previous year to EUR 1.151 billion (previous year: EUR 934 million). As already announced on July 10, 2008, sales and earnings were significantly down on the equivalent figures for the previous year due to difficult market conditions and customers' reluctance to invest in the run-up to drupa. Sales by the Heidelberg Group in the first three months (April 1 to June 30) totaled EUR 657 million (previous year: EUR 742 million). The order backlog at the end of the first quarter was EUR 1.298 billion (previous quarter to March 31, 2008: EUR 874 million).
"Healthy incoming orders from drupa will mean better operating results in the second and third quarters than in the first three months," stated Bernhard Schreier, CEO of Heidelberger Druckmaschinen AG. "The trade show enabled us to underline our position as the world leader in the industry, but difficult underlying conditions are still impacting on the current market situation. The package of measures already introduced to improve our cost structure will compensate these effects in the medium term," he added.
The Heidelberg Group recorded an operating result of EUR -35 million in the period under review (previous year: EUR 26 million). The net result in the first quarter was EUR -39 million (previous year: EUR 8 million).
Due to the purchase of Hi-Tech Coatings, the cost of drupa, and falling sales, the free cash flow in the first quarter was clearly below the previous year's level at EUR -211 million (previous year: EUR -81 million).
"As already indicated, weak sales and additional costs led to a negative operating result for the first quarter of the financial year," explained Heidelberg CFO Dirk Kaliebe. "We are working hard to ensure successful implementation of the package of cost-cutting measures introduced so that the resultant savings can be achieved as planned."
As of June 30, 2008, the Heidelberg Group had a workforce of 19,737 worldwide (previous quarter: 19,596). The reasons for the increase in the first quarter of financial year 2008/2009 were the acquisition of the Hi-Tech Coatings companies and the initial consolidation of the production site in Qingpu, China. Adjusted to take into account these initial consolidation effects, the workforce fell by 77 in the first quarter.
Results in the Press and Postpress divisions A successful drupa resulted in healthy incoming orders in the Press Division (offset printing) in the first quarter of the year under review. At EUR 1.030 billion, they were 26 percent up on the previous year's level (previous year: EUR 817 million). Sales in the first three months totaled EUR 568 million (previous year: EUR 639 million). The poor performance of sales combined with additional costs, including those associated with drupa, led to an operating result of EUR -29 million (previous year: EUR 21 million).
Incoming orders in the Postpress Division (finishing) also increased in the first quarter thanks to drupa and were 5 percent up on the same period of the previous year at EUR 114 million (previous year: EUR 109 million). Quarterly sales amounted to EUR 82 million (previous year: EUR 95 million). The operating result for the period under review was EUR -11 million (previous year: EUR -4 million). This was caused by poor sales and the additional costs associated with drupa.
In the EMEA, North America, Latin America and Asia/Pacific regions, incoming orders were up on the previous year's level thanks to drupa. The improvement was particularly marked in Germany, but France also benefited greatly from orders placed at the trade show. drupa did not have the same impact on the Eastern Europe region as it did, for example, in Central Europe. Sales in all regions were down on the previous year's level for the first quarter.
The company does not expect to match the previous year's sales and operating result for the financial year 2008/2009 as a whole. Due to the uncertain economic situation worldwide and the volatile market environment, it will not be possible to provide a forecast of the key figures for the financial year 2008/2009 as a whole until later in the year. An outlook should be published no later than with the half-yearly results at the beginning of November 2008.
The complete report for the first quarter of 2008/2009 is available online at www.heidelberg.com.
For further details, visit the Internet Press Lounge at www.heidelberg.com.
The scheduled publication date for the half-yearly results for financial year 2008/2009 is November 6, 2008.
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