Heidelberg Financial Year 2006/2007: Targets Achieved - Further Improvement in Earning
HEIDELBERG, GERMANY—06/13/2007—Heidelberger Druckmaschinen AG (Heidelberg) clearly increased both sales and earnings in financial year 2006/2007 (April 1, 2006 to March 31, 2007). “For the fourth year in succession, we have been able to draw on the upswing in the global economy and the resultant upward trend in our industry,” stated Bernhard Schreier, CEO of Heidelberger Druckmaschinen AG. “For the current financial year, we are expecting moderate growth in the volume of business,” he added.
Sales by the Heidelberg Group during the period under review climbed six percent to 3.803 billion Euro (previous year: 3.586 billion Euro). The fourth quarter alone returned sales of 1.214 billion Euro, the highest level in the last five years on a comparable basis.
Incoming orders in the financial year just closed were 3.853 billion Euro (previous year: 3.605 billion Euro), around seven percent up on the previous year. The Heidelberg Group thus succeeded in increasing incoming orders for the third successive year. At around one billion Euro, the order backlog at March 31, 2007 was on a par with the previous year’s high level.
In the period under review, the Heidelberg Group increased its operating result to 362 million Euro, significantly up on the previous year (previous year: 277 million Euro). This produced an EBIT margin of 9.5 percent of sales (previous year: 7.7 percent). A number of factors contributed to this result, including positive one-time effects from asset management of around 60 million Euro, resulting primarily from the sale of Linotype GmbH and the Research and Development Center in Heidelberg (“sale and lease back”). During the course of the year, this helped compensate most of the higher spending on R&D, investments in new generations of printing presses, more unfavorable exchange rates, and a decline in sales in China.
The net profit climbed to 263 million Euro (previous year: 135 million Euro) and included a positive one-time effect in the form of a corporate income tax credit of 73 million Euro. This credit relates to a change in the way existing tax credits are treated and has no impact on the level of future dividends. The free cash flow also increased substantially to 229 million Euro (previous year: 149 million Euro) as a result of tight asset management.