Heidelberg Second-Quarter, Six-Month Results in Line with Expectations
The order situation at Heidelberg was around or above the previous year’s level in the individual regions at the half-year mark and was thus in line with expectations. The 40 percent year-on-year increase in the North America region was particularly pleasing. In the Asia/Pacific region and in Europe, Middle East and Africa (EMEA), the half-year figures also surpassed those of 2011/2012. In Eastern Europe, incoming orders remained at the previous year’s level while the order intake in South America fell slightly below the prior year.
It was a similar story for net sales in the first half-year: Compared with the previous year, net sales rose considerably in Eastern Europe, North America, and Asia/Pacific, but remained stable in the EMEA region and fell short of the prior-year figure in South America.
Outlook confirmed for the current financial year 2012/2013
The sovereign debt crises and the volatile overall economic and market environment continue to make it difficult to forecast how business will develop. For the current financial year 2012/2013, Heidelberg expects a clear shift into the second half-year of the sales favored by orders generated at the trade show, with a consequent improvement in profit contributions. Heidelberg continues to expect a clearly positive result of operating activities excluding special items, which, however, was negatively impacted especially in the first half of the year by costs incurred for drupa and product launches.
Around one third of the planned savings from the Focus 2012 efficiency program of approximately €180 million will already take effect in the current financial year. The expenditures required for this purpose, however, will weigh on the financial result. As a consequence, income before taxes will be negative. In the financial year 2012/2013, free cash flow will see a significant negative impact from the pro-rata expenditures for Focus 2012; thus, net financial debt will also increase in the meantime.