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Heidelberg Reports Positive Operating Result for First Time in Two Years

June 16, 2011
HEIDELBERG, GERMANY—June 16, 2011—Incoming orders and sales recorded by Heidelberger Druckmaschinen AG (Heidelberg) in its financial year 2010/2011 (April 1, 2010 to March 31, 2011) were up on the previous year. After two years in the red, the operating result improved significantly, moving back into the black. Heidelberg has therefore met its own forecasts.

“We achieved our targets in financial year 2010/2011 and Heidelberg is now back on a growth path. This once again proves that we have adopted the right strategy—competitive products and services, a strong presence on emerging markets, a commitment to less cyclical areas such as services and consumables, and an expansion of business with packaging print shops. We will continue to systematically implement this successful strategy during the current financial year and gradually build up to our medium-term target of sales exceeding EUR 3 billion and a return on sales of more than 5 percent,” said company CEO Bernhard Schreier.

At a total of EUR 2.757 billion, incoming orders were up around 16 percent on the previous year's figure of EUR 2.371 billion. Some EUR 140 million of this increase were linked to exchange rate movements. Trade show success at ExpoPrint in Brazil and Ipex in the United Kingdom led to above-average incoming orders in the first quarter. Consequently, incoming orders were slightly higher in the first half-year than in the second. They exceeded the previous year's figure in all regions but grew more strongly on emerging markets than in industrialized countries.

Heidelberg Group sales climbed by around 14 percent to EUR 2.629 billion (previous year: EUR 2.306 billion). This includes approximately EUR 135 million from exchange rate movements. The highly dynamic emerging markets paved the way for strong growth in the print media industry there. As a result, these markets once again increased their total share of sales— from 42 percent the previous year to around 45 percent at the end of the year under review. Brazil played a major part in this increase, as did China thanks to strong growth. China's share of sales is now around 16 percent, followed by Germany with 15 percent.

The operating result improved significantly due to higher profit contributions and the savings made during the financial year. The result of operating activities excluding special items rose to EUR 4 million at the end of the financial year (previous year: EUR -130 million). Special items in the financial year just closed totaled EUR 2 million. This resulted in a result of operating activities including special items of EUR 6 million.

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