Heidelberg Records Incoming Order Increase, Sales Decline

The result of operating activities excluding special items (EBIT) for the first quarter improved over the same period of the previous year from €-35 million to €-25 million. There were no significant special items in the quarter under review. In the same quarter the previous year, the special items had included income of €15 million.

“In the first quarter, we were able to improve our operating result excluding special items on the previous year while sales remained stable,” said Heidelberg Group CEO Bernhard Schreier. “We are keeping a close eye on current economic developments across the globe, but it is difficult to predict what will happen. However, given the continuing high demand and strong economic growth on the Chinese market, we are assuming that the regional effects on business development at Heidelberg will be only temporary.”

At €-22 million, the financial result in the period under review improved over the same period of the previous year (€-35 million) due to the lower financing costs resulting from the successful refinancing measures in the first quarter. Income before taxes improved from €-56 million in the same quarter the previous year to €- 47 million in the first quarter of 2011/2012. Income after taxes was €-46 million (previous year: €-52 million).

As a result of the successful capital increase in the past financial year and the improved operating result, the net financial debt fell considerably from €629 million in the previous year to €260 million and remained stable in comparison to the previous quarter (€247 million). Supported by consistent cash management, free cash flow in the quarter under review more or less balanced out at €-6 million despite one-off refinancing costs.

“The significantly reduced net financial debt and our refinancing operation concluded in spring are evidence that Heidelberg is on a stable financial footing,” said Heidelberg CFO Dirk Kaliebe. “We will forge ahead with our successful strategy, particularly through consistent cost and asset management.”

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