Heidelberg’s Q4 Preliminary Figures Show Positive Developments in Sales, Operating Result
HEIDELBERG, GERMANY—April 20 2012—Based on preliminary calculations, Heidelberger Druckmaschinen AG (Heidelberg) achieved an increase in sales in the fourth quarter of financial year 2011/2012 (Jan. 1, 2012 to March 31, 2012) compared to the previous year—from €745 million to around €780 million, thus reaching the highest quarterly sales figure for the last three years.
The preliminary result of operating activities excluding special items continued to improve as the year progressed, reaching around €20 million in the quarter under review (previous year: €30 million). The higher provision for risks had a negative impact. As a result of Eastman Kodak currently being subject to Chapter 11 proceedings under the U.S. Bankruptcy Code, this provision was in the low double-digit million euro range. Heidelberg sublets an administrative and production building in Rochester, NY, to Kodak and the associated provision for risks is an appropriate response to the current appraisal of the situation.
For this reason, the aim of significantly improving the operating result excluding special items for financial year 2011/2012 as a whole cannot be achieved. Based on preliminary calculations, this figure will once again be slightly positive, somewhere between €0 million and €5 million (previous year: €4 million).
As expected, preliminary incoming orders in the fourth quarter were down on the previous year’s level of €637 million at just over €570 million. Based on previous experience, this is because print shops are holding back with orders in the quarter prior to drupa (which takes place in May 2012).
“Sales in the final quarter were encouragingly high. The operating result continued to improve as the year went on. However, due to the necessary balance sheet provision, we were unable to achieve our target for the year as a whole,” said Heidelberg CEO Bernhard Schreier. “drupa has come at exactly the right time and we expect this key trade show to give the industry a favorable impetus. Customer response to the numerous innovations at the show is very promising so far,” he continued.