Heidelberg Achieves Significant Improvement in Result for Q1 of 2013/2014
HEIDELBERG, GERMANY—August 13, 2013—The new organization and the comprehensive range of cost-cutting measures are showing tangible results at Heidelberger Druckmaschinen AG (Heidelberg). As expected, the company significantly improved its operating result in the first quarter of financial year 2013/2014 (April 1 to June 30, 2013), which puts it on the right track for meeting its target of a positive net result for the year.
"The substantial increase in our operating result makes us confident that we will record a profit for the year as a whole," said Heidelberg CEO Gerold Linzbach. "In order to achieve this, we are systematically pressing ahead with our strategic reorganization so as to further improve our margins for new machine sales in the future and adapt our cost structures to the market situation on an ongoing basis," he added.
Group sales in the first quarter were in line with expectations at EUR 504 million, despite being around 3 percent down on the figure for the same quarter of the previous year (EUR 520 million). Sales fell slightly in all three segments—Equipment, Services and Financial Services. In most regions, they matched the previous year's level. In the South America region, however, Brazil's continuing economic difficulties hit business hard.
As expected, results improved significantly in the first quarter thanks to sustained savings from Focus 2012 and higher profit contributions for new equipment. What's more, the previous year's results had been burdened by trade show expenditures. EBITDA excluding special items improved considerably from EUR -47 million to EUR -2 million. At EUR -20 million, the result of operating activities ( EBIT) excluding special items clearly surpassed the previous year's figure of EUR -67 million. Special items in the reporting period totaled EUR 1 million (previous year: EUR 6 million). At EUR -12 million, the financial result for the first quarter remained stable at the previous year's level. Accordingly, the pre-tax result improved significantly from EUR -85 million to around EUR -33 million. Overall, the net loss in the first quarter of 2013/2014 was halved from the previous year's figure of EUR -76 million to EUR -38 million.