Heidelberg, Germany
-- Incoming orders around EUR 934 million
-- Sales climb by 3 percent to EUR 742 million
-- Operating result up to EUR 26 million
-- Outlook for full financial year 2007/08 unchanged
Heidelberger Druckmaschinen AG (Heidelberg) (FWB:HDD) increased its sales and earnings in the first quarter of financial year 2007/2008 compared with the previous year. At EUR 742 million, sales by the Heidelberg Group in the first three months (April 1 to June 30) were around 3 percent up on the previous year (EUR 719 million). Incoming orders in the first quarter were EUR 935 million (previous year: EUR 1.076 billion). The decline compared with the same quarter of the previous year is attributable to the high volume of orders received at the IPEX trade show in April 2006. The order backlog at the end of the first quarter was EUR 1.196 billion (previous year: EUR 1.346 billion).
"The upward trend in the print media industry is continuing on the back of positive developments in the global economy," stated Bernhard Schreier, CEO of Heidelberger Druckmaschinen. "If we take due account of the effect of the IPEX trade show in Birmingham in the previous year, incoming orders attained a very good level in the first quarter of EUR 935 million."
The Heidelberg Group recorded an operating result of EUR 26 million in the period under review (previous year: EUR 16 million). The net profit in the first quarter was EUR 8 million (previous year: EUR 5 million).
"The operating result of the Heidelberg Group has once again improved slightly over the previous year," stated Heidelberg CFO Dirk Kaliebe, "and was able to more than compensate for the anticipated costs from the collective wage agreement."
As of June 30, 2007, the Heidelberg Group had a workforce of 19,239 worldwide (up 68 during the quarter).
Results in the Press and Postpress divisions
In the Press Division (offset printing), sales rose to EUR 639 million in the first three months (previous year: EUR 620 million). Incoming orders in the period under review amounted to EUR 817 million (previous year: EUR 954 million). The operating result in the first quarter was EUR 21 million (previous year: EUR 4 million); Prepress delivered positive results for the first time.
In the Postpress Division (finishing), quarterly sales were EUR 95 million (previous year: EUR 89 million). Incoming orders totaled EUR 109 million (previous year: EUR 112 million). The operating result in the period under review was EUR minus 4 million (previous year: break-even) due to exchange rate movements and to the product mix.
Sales in all regions in the first quarter were on a par with or exceeded the previous year's level. In EMEA and Asia/Pacific, incoming orders in the period under review fell in comparison with the previous year due to the high volume of orders received at the IPEX trade show in April 2006.
Outlook for financial year 2007/08 unchanged
During the next three-year period, from 2007/2008 to 2009/2010, the Company expects total sales to increase by 10 to 15 percent. In the current financial year 2007/2008, Heidelberg predicts moderate growth in the run-up to drupa 2008.
In financial year 2007/2008, Heidelberg is looking to increase its pure operating result by 10 to 15 percent - compared to the adjusted value for the previous year of EUR 302 million. This marks out a target operating result for 2007/2008 of EUR 330 million to EUR 345 million.
The positive effects of the German tax reform and internal optimization measures with regard to the tax rate will also play their part in further increasing the net profit. Overall, the Company expects an increase in the net profit - excluding one-time effects - of around 4 percent of sales in the previous year to about 5 percent in financial year 2007/2008.
The complete report for the first quarter of 2007/2008 is available online at www.heidelberg.com.
For further information visit the Internet Press Lounge at www.heidelberg.com.
Other dates:
Publication of the half-yearly results for financial year 2007/2008 is scheduled for November 6, 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.
Source: Business Wire (Business Wire India)