Heidelberg Moving Forward with Measures to Achieve Profitability Targets
HEIDELBERG, GERMANY—Jan. 17, 2012—As announced in November 2011, the management board of Heidelberger Druckmaschinen AG (Heidelberg) has agreed on the “FOCUS 2012” efficiency program to achieve the company’s profitability targets. The aim is to ensure that its target operating result before special items of around €150 million is still achieved in financial year 2013/14 and the company can independently continue to build on its leading position in the future.
- “FOCUS 2012” aims to deliver operating result of around €150 million in financial year 2013/14.
- Measures initiated to reduce capacity and cut sales, marketing and structural costs.
- Up to 2,000 job cuts planned worldwide.
‘FOCUS 2012’ - a Comprehensive Package of Measures
The objective of the “FOCUS 2012” efficiency program is to help significantly reduce capacities and costs at Heidelberg over the next two years. This will lay the foundation for positive business developments in response to the volatile environment and changing market requirements. Most of the measures will be initiated and implemented quickly before the end of calendar year 2012. In addition, the program includes a number of medium- to long-term measures aimed at adapting the entire organization to the changed structures.
The target is to achieve total sustainable savings of around €180 million in financial year 2013/14. Depending on the results of negotiations with employee representatives and other factors, the non-recurring expenditure required to do so is estimated at up to €150 million.
“The ongoing economic uncertainties will continue to put a brake on the industry’s recovery. We are seeing weaker demand in industrialized nations but stronger growth potential in emerging markets,” said Heidelberg CEO Bernhard Schreier. “FOCUS 2012 will position Heidelberg accordingly, above all by significantly reducing production capacities and by adjusting sales activities to the regional market changes. This will create the basis and efficient structures needed for profitable business development.”