Heidelberg Records Incoming Order Increase, Sales Decline
In the North America region, incoming orders—after adjustment for exchange rate effects—increased by 6 percent over the previous year. In the South America region, incoming orders were 21 percent below the previous year’s figure for this period, mainly due to the ExpoPrint trade show that took place at this time.
In the Asia/Pacific region, incoming orders were down 10 percent, but matched the prior year level after adjustment for exchange rate effects. While net sales for the first quarter after adjustment for exchange rate effects grew slightly in Eastern Europe, North America, and South America, sales in Europe, Middle East and Africa, and Asia/Pacific were either on a par or below the previous year’s levels.
The global economic and market risks are still high and have increased significantly overall in the last few days. The worsening of the debt crisis in some European countries and in the United States, coupled with the recent upheavals on the international financial markets, could slow the pace of macroeconomic growth and have a negative impact on investment behavior. If underlying macroeconomic conditions and the sector as a whole remain stable, Heidelberg nevertheless continues to strive for a break-even pre-tax result in financial year 2011/2012 - based on a higher operating result and lower financing expenses.
The global printing volume remains stable and will require investments in production equipment. Based on this, Heidelberg intends to achieve a medium-term sales target of over € 3 billion annually over the next two to three years. Assuming that the economic environment will continue to be generally stable, Heidelberg expects to gradually approach this target during the current and next financial year. Due to drupa 2012 and the ongoing upswing in the print media industry, sales in the next year should grow more strongly than during the current financial year.