Heidelberg Reports Incoming Orders Increased in Third Quarter
HEIDELBERG, GERMANY—02/09/2010—In the third quarter of financial year 2009/2010 (October 1 to December 31, 2009), incoming orders and sales at Heidelberger Druckmaschinen AG (Heidelberg) were up on the previous quarters. The savings resulting from the package of cost-cutting measures have helped to significantly reduce the operating loss over the past three months. Due to mixed economic expectations around the globe, however, there is as yet no clear improvement in the level of investment in the print media industry.
• Q3 incoming orders up on previous year at EUR 609 million
• Q3 operating result, excluding special items, of EUR -13 million
• Positive free cash flow of EUR 3 million in Q3
Incoming orders in the third quarter of financial year 2009/2010 amounted to EUR 609 million, 14.7 percent up on the previous quarter's level of EUR 534 million and roughly nine percent higher than the figure for the same quarter the previous year (EUR 560 million). This was the highest level for five quarters. Incoming orders after nine months (April 1 to December 31, 2009) totaled EUR 1.693 billion (previous year: EUR 2.432 billion). A key factor in the previous financial year was the volume of orders resulting from the drupa trade show in May 2008.
"Incoming orders and sales were slightly up in the third quarter," stated Heidelberg CEO Bernhard Schreier. "We achieved some fairly notable business successes, particularly in China and Germany. We have increased our market share with our new large-format presses. There is currently no sign of a significant recovery, though, because generally speaking print shops around the globe are still reluctant to invest," he added.
At EUR 578 million, sales in the third quarter matched the highest level to date for the current financial year. Services accounted for just under 30 percent of this figure. Sales were EUR 79 million higher than the previous quarter's figure of EUR 499 million but 23 percent down on the same quarter the previous year, when they totaled EUR 750 million. They were also 28 percent lower than during the equivalent nine months the previous year, totaling EUR 1.591 billion (previous year: EUR 2.211 billion).