Heidelberg, Germany
-- Incoming orders 13 percent up on previous year
-- Sales 6 percent up at EUR 1.628 billion
-- Considerable improvement in result of operating activities at EUR 118 million
-- Outlook for full financial year 2006/2007 confirmed
For the first six months of financial year 2006/2007 (April 1 to September 30, 2006), Heidelberger Druckmaschinen AG (Heidelberg) (FWB: HDD) increased its sales and earnings over the previous year. Heidelberg Group sales in the first six months were 6 percent up on the comparable figure for the previous year at EUR 1.628 billion (previous year: EUR 1.529 billion). Incoming orders in the period climbed 13 percent to EUR 1.996 billion (previous year: EUR 1.760 billion). The order backlog of EUR 1.343 billion at the end of the second quarter was at the same high level as the previous quarter.
"Our customers are continuing to invest in cutting-edge and efficient presses to boost their productivity, a development that is having a positive effect on our order situation," stated Heidelberg CEO, Bernhard Schreier. "The annual average volume of incoming orders has now grown consistently for three financial years in a row. During the first six months of the current financial year, the growth in sales and incoming orders was particularly strong in industrial countries such as the USA and Germany. Our forecast for the full financial year 2006/2007 remains on track."
The Heidelberg Group recorded a result of operating activities of EUR 118 million in the first half year (previous year: EUR 72 million). This includes one-off effects worth EUR 25 million - among other things for the sale of the Linotype holding. The net profit after six months more than doubled to EUR 68 million (previous year: EUR 31 million).
"The improvement in results in the first half year shows that Heidelberg has made further progress towards improving its profitability," stated Heidelberg CFO, Dirk Kaliebe. "The launch of new products and measures to improve competitiveness have made their mark on results. We will continue to do everything we can to improve our competitive edge."
As of September 30, 2006, the Heidelberg Group has had a workforce of 19,093 worldwide (previous year: 18,774). Some 300 new employees were added to the workforce during the first six months of the year.
Increased sales and results in the divisions in the first half year
In the Press Division (offset printing), sales rose to EUR 1.423 billion in the first six months (previous year: EUR 1.330 billion). Incoming orders in the period under review amounted to EUR 1.762 billion (previous year: EUR 1.557 billion). The result of operating activities in the first half year totaled EUR 96 million (previous year: EUR 64 million).
In the Postpress Division (finishing), half-yearly sales were EUR 186 million (previous year: EUR 174 million). Incoming orders were EUR 215 million (previous year: EUR 178 million). The result of operating activities achieved break-even (previous year: EUR -2 million).
Sales in the EMEA, North America, Latin America and Eastern Europe regions in the first half year exceeded the comparable figures for the previous year. In the Asia/Pacific region, sales figures were almost on a par with the high levels of the previous year. The temporary suspension of the tax exemption in China had a decelerating effect on incoming orders and sales.
Outlook for financial year 2006/2007 confirmed
For financial year 2006/2007, the Company anticipates that sales will be around 5 percent up on financial year 2005/2006.
Heidelberg plans to increase its result of operating activities to around 10 percent of sales during the current financial year.
Additional transfer of funding to Heidelberg Pension Trust e.V.
Thanks to an additional funding of EUR 50 million, Heidelberg was able to reduce pension provisions in its balance sheet as at September 30, 2006 to EUR 148 million. At the end of the first half year 2006/07, the Heidelberg pension fund totaled around EUR 520 million. The Management Board, as already reported, had decided back in February 2006 to transfer the funding of pension obligations for existing and retired employees through a Contractual Trust Arrangement (CTA).
Second share buyback program launched for up to 5 percent of share capital
The share buyback program initiated last week by the Management Board to repurchase up to 5 percent of the Company's share capital (up to 4,152,535 shares) starts today and will run till January 19, 2008 at the latest. In initiating the program, the Management Board drew upon the relevant authorization granted by the Annual General Meeting on July 20, 2006. The repurchased shares are earmarked for cancellation or for use in employee share participation programs.
"The ongoing improvement in our financial strength enables us to start a further share buyback program," stated CFO Dirk Kaliebe. "This will allow us to further optimize Heidelberg's financial structure."
The complete report for the first half of 2006/2007 will be available online at www.heidelberg.com from 9.00 a.m. onwards.
The tables showing the figures can be downloaded from the Press Lounge at www.heidelberg.com.
Other dates:
The scheduled publication date for the accounts for the first nine months of financial year 2006/2007 is January 31, 2007.
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 Corporate Communications Thomas Fichtl +49 6221 92 4747 Fax: +49 6221 92 5069 thomas.fichtl@heidelberg.com
CONTACT: Heidelberger Druckmaschinen AG Corporate Communications Thomas Fichtl +49 6221 92 4747 Fax: +49 6221 92 5069 thomas.fichtl@heidelberg.com , ,
Source: Business Wire (Business Wire India)