Heidelberg Achieves Significant Improvement in Result for Q1 of 2013/2014
Incoming orders amounted to EUR 643 million in the reporting period. The far higher order volume of EUR 890 million in the same quarter of the previous year can be explained by the industry trade show drupa, which took place in May 2012. The China Print trade show in May this year went well, but coincided with a reluctance to invest in the Europe, Middle East and Africa region and the South America region, especially in Brazil. At EUR 602 million, the order backlog at June 30, 2013 was 20 percent up on the figure for the previous quarter (EUR 502 million).
Free cash flow, including payments for Focus totaling EUR 31 million, at break-even; net debt at the same level
Thanks to the continuation of comprehensive asset management and the net working capital program, the free cash flow reached break-even in the first quarter. This was a sizable improvement of around EUR 112 million compared to the figure for the same quarter of the previous year.
Thanks to the free cash flow breaking even, at EUR 258 million net debt remained at almost the same level as at financial year-end 2012/2013 and did so despite further payments for Focus 2012 amounting to some EUR 31 million in the first quarter.
"Thanks to systematic asset management over the past four years, we have succeeded in also covering our restructuring costs with the free cash flow. This has enabled Heidelberg to keep its net debt at a low level," noted CFO Dirk Kaliebe. "With the recent successful convertible bond issue and our existing bond, the majority of our debt is now covered by long-term capital market instruments. This places Heidelberg on a sound financial footing," he added.
By issuing a convertible bond in July 2013, Heidelberg further diversified its financing structure in terms of both financing sources and maturity profile. The EUR 60 million convertible bond matures in July 2017. Issuing it enabled the company to further reduce its syndicated credit line to around EUR 416 million.