Heidelberg, Germany
Heidelberger Druckmaschinen AG (FWB: HDD):
The following information relates to the continuing operations of the Heidelberg Group. These include the Press, Postpress and Financial Services divisions. The Digital Division was sold and deconsolidated on May 1, 2004, the Web Systems Division on August 6, 2004. All figures for the previous year mentioned in this press information have been adjusted to ensure that the figures stated provide a basis for comparison.
-- Sales up 12 percent to 3.586 billion Euro
-- Operating result 277 million Euro, or 7.7 percent of sales
-- Net profit more than doubled to 135 million Euro
-- Proposed dividend of 0.65 Euro per share more than doubled
-- Prospects for 06/07: Expected increase in sales of around 5 percent and operating result of around 10 percent of sales
Heidelberger Druckmaschinen AG (Heidelberg) (FWB: HDD) increased sales and earnings substantially in financial year 2005/2006 (April 1, 2005 to March 31, 2006). "Heidelberg's figures for the last financial year prove we have continued to increase our profitability," said Bernhard Schreier, CEO of Heidelberger Druckmaschinen AG. "Earnings per share rose from 0.64 Euro to 1.58 Euro. The planned dividend of 0.65 Euro per share - more than double the amount for the previous year - means our shareholders will also benefit from the positive development in the company."
Sales by the Heidelberg Group during the period under review grew twelve percent to 3.586 billion Euro (previous year: 3.207 billion Euro).
Incoming orders in the financial year ending March 31, 2006 were 3.605 billion Euro (previous year, including orders received at drupa: 3.508 billion Euro) and were therefore around three percent higher than last year's already high figure and well above expectations. At around 1 billion Euro, the order backlog at March 31, 2006 was on a par with the previous year's very high figures.
In the period under review, the Heidelberg Group improved the previous year's operating result by 31 percent to 277 million Euro (continuing operations previous year: 211 million Euro).
This produced an EBIT yield of 7.7 percent of sales in line with expectations. At 135 million Euro, net profit more than doubled in comparison to the previous year (previous year, including discontinuing operations: 59 million Euro). This corresponds to a return on sales after tax of 3.8 percent. At 149 million Euro, free cash flow was above expectations - and already included the transfer of pension funding provisions amounting to 124 million Euro.
"We expect the positive trend in the print media industry to continue for 2006," said Dr. Herbert Meyer, the company's CFO. "The new financial year got off to a very satisfying start, thanks to positive trade show activity at IPEX in April and several large orders from Asia. We anticipate further increases in sales and operating result for the full financial year 2006/2007."
As of March 31, 2006, the Heidelberg Group had a workforce of 18,716 worldwide (previous year: 18,679).
Results in the Press and Postpress Divisions
In the Press Division (offset printing), sales in the financial year just closed rose by approx. 12 percent to 3.142 billion Euro. Incoming orders in the period under review increased by two percent on the previous year to around 3.146 billion Euro. The operating profit for 2005/2006 was 248 million Euro (previous year: 187 million Euro).
In the Postpress Division (finishing) sales in the period under review rose by around 14 percent to 398 million Euro. Incoming orders increased by 15 percent to 413 million Euro. The division's operating result for the period under review was -3 million Euro (previous year: -2 million Euro). The operating result in the Postpress Division was burdened by a one-off goodwill depreciation of 6.5 million Euro which did not affect payments.
Sales in all regions were up on the previous year. Incoming orders also grew, except in the Eastern Europe and North America regions. Proposed dividend doubles to 0.65 Euro per share The Management Board and the Supervisory Board will be proposing to the Annual General Meeting on July 20, 2006 that a dividend of 0.65 Euro per share - double the amount for the previous year - be paid for financial year 2005/2006.
Prospects for financial year 2006/2007: Expected growth in sales of around 5 percent, operating result set to be around 10 percent of sales
For financial year 2006/2007, the company expects growth in sales of around 5 percent on financial year 2005/2006. Heidelberg plans to boost the result of operating activities to around 10 percent of sales in the current financial year.
The table with the figures and further information about Heidelberg, can be downloaded on the Internet Press Lounge at www.heidelberg.com.
Other dates:
The Annual General Meeting of Heidelberger Druckmaschinen AG will be held at the Congress-Center Rosengarten in Mannheim, Germany, on July 20, 2006.
The scheduled publication date for the annual accounts for the first quarter of 2006/2007 is August 1, 2006.
Important note:
This Press Information contains statements about future development that are based on assumptions and estimates by the management of Heidelberger Druckmaschinen Aktiengesellschaft. Even if the management is of the opinion that these assumptions and estimates are accurate, future actual developments and future actual results may differ significantly from these assumptions and estimates due to a variety of factors. These factors can include changes to the overall economic climate, changes to exchange rates and interest rates and changes in the graphic arts industry. Heidelberger Druckmaschinen Aktiengesellschaft provides no guarantee that future developments and the results actually achieved in the future will agree with the assumptions and estimates set out in this press release and assumes no liability for such.
CONTACT: Heidelberger Druckmaschinen AG Thomas Fichtl +49 6221 92 4747 Fax: +49 6221 92 5069 E-Mail: thomas.fichtl@heidelberg.com
CONTACT: Heidelberger Druckmaschinen AG Thomas Fichtl +49 6221 92 4747 Fax: +49 6221 92 5069 E-Mail: thomas.fichtl@heidelberg.com, ,
Source: Business Wire (Business Wire India)