Heidelberg Presents Final First-Quarter Figures; Incoming Orders Rise
HEIDELBERG, GERMANY—08/05/2008—In the first quarter of financial year 2008/2009, Heidelberger Druckmaschinen AG (Heidelberg) recorded a significant improvement in incoming orders over the previous year thanks to the industry trade show drupa. In the period under review, the Heidelberg Group increased its incoming orders by around 23 percent over the same quarter the previous year to 1.151 billion Euro (previous year: 934 million Euro). As already announced on July 10, 2008, sales and earnings were significantly down on the equivalent figures for the previous year due to difficult market conditions and customers’ reluctance to invest in the run-up to drupa. Sales by the Heidelberg Group in the first three months (April 1 to June 30) totaled 657 million Euro (previous year: 742 million Euro). The order backlog at the end of the first quarter was 1.298 billion Euro (previous quarter to March 31, 2008: 874 million Euro).
“Healthy incoming orders from drupa will mean better operating results in the second and third quarters than in the first three months,” stated Bernhard Schreier, CEO of Heidelberger Druckmaschinen AG. “The trade show enabled us to underline our position as the world leader in the industry, but difficult underlying conditions are still impacting on the current market situation. The package of measures already introduced to improve our cost structure will compensate these effects in the medium term,” he added.
The Heidelberg Group recorded an operating result of minus 35 million Euro in the period under review (previous year: 26 million Euro). The net result in the first quarter was minus 39 million Euro (previous year: eight million Euro).
Due to the purchase of Hi-Tech Coatings, the cost of drupa, and falling sales, the free cash flow in the first quarter was clearly below the previous year’s level at minus 211 million Euro (previous year: minus 81 million Euro).