HEIDELBERG, GERMANY—11/06/2008—In the first six months of financial year 2008/2009 (April 1, 2008 to September 30, 2008), Heidelberger Druckmaschinen AG (Heidelberg) matched the previous year's incoming orders thanks to the industry trade show drupa in May 2008.
Looking at the second quarter (July to September 2008) in isolation, incoming orders fell sharply by around 23 percent due to the continuing financial crisis and the resultant global economic uncertainties. Incoming orders for the Heidelberg Group in the period under review totaled 1.872 billion Euro (previous year: 1.866 billion Euro), 721 million Euro of this in the second quarter (previous year: 932 million Euro).
Sales by the Heidelberg Group in the first two quarters amounted to 1.461 billion Euro (previous year: 1.639 billion Euro). In the second quarter, Heidelberg achieved sales of 804 million Euro (previous year: 897 million Euro). This figure was lower than expected. The order backlog at the end of the second quarter was 1.206 billion Euro (previous quarter to June 30, 2008: 1.298 billion Euro).
The operating result of the Heidelberg Group in the second quarter of financial year 2008/2009 was well into negative figures at -50 million Euro (previous year: 70 million Euro). This result includes special items totaling 40 million Euro, among them a EUR 22 million provision from the collective labor agreement for partial retirement and the outlay for the package of cost-cutting measures. After adjustments for special items, the operating result for the second quarter was -10 million Euro. Falling sales and the resultant low profit contributions, the start of series production for new products, higher raw material prices, and the remaining costs for drupa all burdened results during the second quarter. The cumulative operating result after two quarters was -85 million Euro (previous year: 96 million Euro) and the net result in the first six months was -95 million Euro (previous year: 44 million Euro).
"We are working harder and faster to adapt our structures and costs to the gloomy economic forecasts and the industry's reluctance to invest," stated Heidelberg CEO Bernhard Schreier. "We are sticking with our strategic approach and our comprehensive range of products and services. Despite our reduced budget, we will maintain our leading market position. We need to use the measures initiated to stabilize the earnings situation until there is an improvement in the overall economic climate," he continued.
After the first six months of the financial year, the free cash flow stood at -273 million Euro (previous year: -43 million Euro). The figure for the second quarter on its own was -62 million Euro.
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