Heidelberg Second-Quarter, Six-Month Results in Line with Expectations

Heidelberg will apply the new version of the international accounting standard IAS 19, which aims to improve transparency and comparability when reporting pension commitments, for the first time from financial year 2013/2014. Depending on how pension commitments have been recognized previously, there will be consequent effects on the key performance data in the statements of financial position and income statements of companies reporting under international accounting standards.

In the coming financial year 2013/2014, the cost reductions resulting from Focus 2012 will be fully effective for the first time and will result in annual savings of approximately €180 million. The compulsory adoption of the new version of IAS 19 from the coming financial year will have effects—depending on the performance of various parameters—on Heidelberg’s income statement. In particular, income estimated to be between €25 million and €30 million currently included under the result of operating activities excluding special items will be reclassified under the financial result.

Heidelberg intends to make up as soon as possible for the negative effects of this reclassification on its target of achieving a result of operating activities excluding special items of around €150 million. As income before taxes is virtually unaffected just by the change in reporting, the current forecast of income before taxes being clearly positive and accordingly of achieving a net profit for the year remains valid.

“Heidelberg has only one objective at the moment - to get back into the black and stay there. We are therefore systematically gearing the activities of all business areas to this goal,” said Linzbach with a view to the group’s future.

Source: Heidelberg.