Heidelberg Reports Incoming Orders Up 43 Percent
HEIDELBERG, GERMANY—08/10/2010—Heidelberger Druckmaschinen AG (Heidelberg) is publishing its results for the first quarter of financial year 2010/11 (April 1 to June 30, 2010). The overall improvement in the underlying economic conditions has had a positive impact on business. Heidelberg customers showed greater readiness to invest in the period under review, thus continuing the previous quarters' upward trend in incoming orders.
At EUR 786 million, incoming orders in the first quarter were up 43 percent on the previous year's figure (EUR 550 million) and 16 percent higher than the previous quarter (EUR 678 million). Contributory factors included positive exchange rate movements equivalent to around EUR 45 million, the high level of orders placed at the Ipex trade show in May 2010, and encouraging business developments—especially in China and Brazil.
As a result of the healthy incoming order situation, the Heidelberg Group's order backlog improved significantly to EUR 810 million at the end of the first quarter. This is the highest level for six quarters.
In the first three months of the current financial year, Heidelberg recorded sales of EUR 563 million, around EUR 36 million of which is linked to exchange rate movements. After adjusting for these movements, sales were up 3 percent on the previous year's figure of EUR 514 million.
"The market recovery continued in the first quarter, thus helping to maintain the upward trend in incoming orders and sales," said Heidelberg CEO Bernhard Schreier. "Together with the cost-cutting measures initiated, this has substantially reduced our operating loss," he added.
The operating result, excluding special items, improved considerably from the previous year's figure of EUR -63 million to EUR -35 million. Key factors in this improvement were slightly higher sales, the savings achieved by the cost-cutting program, and the greater efficiency resulting from the reorganization. Following the agreement reached between the company and employee representatives, parts of the provisions formed in the previous year to improve efficiency could be released. As a result, the income from special items was EUR 15 million. This produced an operating result, including special items, of EUR -20 million. Higher financing costs led to a financial result of EUR -35 million (previous year: EUR -22 million). The profit before taxes for the first quarter improved to EUR -56 million (previous year: EUR -86 million), while net loss in the period under review was EUR -52 million (previous year: EUR -69 million).