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Heidelberg Posts Sales Gain, On Track to Break Even

February 9, 2011
HEIDELBERG, GERMANY—Feb. 9, 2011—Operational business at Heidelberger Druckmaschinen AG (Heidelberg) continued to improve throughout the third quarter of financial year 2010/2011 (Oct. 1 to Dec. 31, 2010). As expected, both incoming orders and sales were again up on the previous year. Coupled with the achieved efficiency increases brought about by the reorganization, this upward trend enabled Heidelberg to achieve a positive operating result before special items for the first time in the current financial year.

At EUR 684 million, incoming orders in the third quarter were up 12 percent over the previous year’s figure (EUR 609 million), with exchange rate effects accounting for EUR 44 million of this. This represents an increase of 5 percent over the previous quarter (EUR 650 million). All in all, order levels improved by 25 percent (18 percent after adjustment for exchange rate effects) over the first nine months, reaching EUR 2,120 million (previous year: EUR 1,693 million).

Sales continued to improve in the third quarter, reaching the highest level for the current financial year at EUR 687 million. This includes EUR 43 million from exchange rate effects. As a result, sales revenues for the quarter were up 19 percent on the previous year (EUR 578 million) and up 9 percent on the previous quarter.

For the first nine months, total sales amounted to EUR 1,883 million—an improvement of 18 percent (11 percent after adjustment for exchange rate effects) on the previous year (EUR 1,591 million). The order backlog of the Heidelberg Group increased to EUR 770 million in the third quarter (previous year: EUR 626 million).

“Thanks to stable growth in the global economy, our incoming orders increased in all regions and divisions during the third quarter. Nonetheless, the economic recovery is still marked by regional differences. While incoming orders are rising steadily in Asia, Europe and Latin America, the recovery in the key U.S. market has been slow to set in,” said Heidelberg Group CEO Bernhard Schreier. “The positive developments of the past nine months show that we are on track to achieve our target—a break-even operating result for the current financial year.”

Positive operating result
As planned, Heidelberg generated a positive result of operating activities excluding special items of EUR 15 million during the third quarter (previous year: EUR -13 million). The company benefited from the increased sales revenues brought about by a more favorable sales mix, from improved market conditions, and from cost savings achieved through the reorganization.

Over the first nine months, results were up a total of EUR 115 million on the previous year (EUR -141 million), thereby reducing the shortfall to just EUR -26 million at the end of the quarter. After nine months, and following the partial release of provisions for efficiency improvements recorded the previous year, special items went positive at EUR 26 million and generated a break-even operating result including special items.
 

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