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Heidelberg’s Sales Flat, but New Products and Organization Promise Long-Term Profitability

June 14, 2012
HEIDELBERG, GERMANY—June 14, 2012—Against the backdrop of economic uncertainty during financial year 2011/2012 (April 1, 2011 to March 31, 2012), Heidelberger Druckmaschinen AG (Heidelberg) has set the basis for long-term profitability with new products, a new organization, and stable financing. The company is well on track to achieving this goal through the Focus 2012 efficiency program, which includes measures to cut costs and capacities and to restructure the organization.

What’s more, Heidelberg has reassigned the board members’ responsibilities with effect from June 1, 2012, with a particular focus on optimizing global sales and strengthening activities in the growth regions, which are expected to produce around 40 percent of the global sheetfed offset print volume in the future.

Stable business development in 2011/2012 amid economic uncertainty
“The second half of financial year 2011/2012, in particular, was shaped by great uncertainty. However, the positive results of the leading trade show drupa showed that confidence within the industry is returning and that the reticence to invest is slowly abating,” said company CEO Bernhard Schreier. “At drupa, Heidelberg presented itself impressively as market leader, innovator, and integrator of new technologies. We have developed the right solutions in response to global trends within the industry and have integrated suitable applications from strategic partners—we could thus set us apart from the competition in a clearly positive way.”

After adjustment for exchange rate movements, total sales in the year under review reached €2.596 billion, roughly on a par with the previous year (€2.629 billion). While sales declined in the industrialized nations, they rose once again in the emerging markets, thus increasing their overall share slightly from 45 percent in the previous year to 46 percent.

At €3 million, the operating result excluding special items remained on a par with the previous year (€4 million) despite non-recurring expenditure. A higher provision for risks made necessary as a result of the Eastman Kodak being subject to insolvency proceedings under U.S. insolvency law (“Chapter 11”) had a negative impact on results in the low two-digit million euro range. Special items in the financial year just closed totaled €142 million due primarily to the Focus 2012 efficiency program, which resulted in an operating result after special items of €-139 million (previous year: €6 million).

At a total of €2.555 billion, incoming orders were down 7 percent on the previous year’s figures (€2.757 billion), which had been boosted by the trade show successes at ExpoPrint in Brazil and Ipex in the UK. In the first half of the year under review, the order volume of €1.333 billion slightly exceeded the level of the preceding half year. However, the second half of the year was hit by a worsening of the underlying economic conditions and restrained investment activity in the fourth quarter in anticipation of drupa, resulting in orders of €1.222 billion.
 

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