Heidelberg Sees Incoming Orders Rise as Quarterly Sales Lag
HEIDELBERG, GERMANY—July 13, 2012—Thanks to a good showing at drupa trade fair, Heidelberger Druckmaschinen AG (Heidelberg) has made a positive start to financial year 2012/2013 (April 1, 2012 to March 31, 2013).
- Strongest start to financial year for four years, with incoming orders climbing to around €890 million.
- Order backlog grows significantly to around €850 million.
- Sales in line with expectations at around €520 million.
- Result of operating activities excluding special items of approximately €-58 million.
Based on preliminary calculations, incoming orders for the first quarter increased to some €890 million (previous year €665 million)—the highest level in four years. As expected, preliminary sales for the same period were slightly down at around €520 million (previous year €544 million). The lower sales figure compared to both the previous year and the previous quarter is a result of customers' reluctance to invest in the run-up to drupa, the industry trade show that took place in May 2012 in Düsseldorf, and the associated low order backlog at the start of the quarter.
In the final quarter of the previous financial year, which ended on March 31, 2012, Heidelberg recorded its highest quarterly sales for three years at €785 million. Thanks to high incoming orders in the first quarter, the preliminary order backlog is now well up on the previous quarter at around €850 million.
As expected, lower profit contributions resulting from the lower sales in the first quarter and the costs of preparing for drupa and launching new products had a negative impact on the preliminary result of operating activities excluding special items. In the first quarter, it was around €-58 million (previous year €-25 million).
The preliminary free cash flow is between €-105 million and €-115 million, largely due to an increase in inventories resulting from the incoming orders received and the payments made for the Focus 2012 efficiency program.