Product category:
Printing Presses and Machinery (New and Used, Service and Repair)
News Release from: Heidelberg
Edited by the Printingtalk Editorial
Team on 02 February 2005
Heidelberg's Sales Progress - But More
Job Cuts?
In the first nine months of the 2004-2005 financial year to December 31, 2004, Heidelberg's sales were 2.23 billion Euros - up from 2.07 billion Euros the previous year.
In the first nine months of the 2004-2005 financial year to December 31, 2004, Heidelberg's sales were 2.23 billion Euros - up from 2.07 billion Euros the previous year In the third quarter alone, sales totaled 860 million Euros, making it the best-performing quarter in terms of sales for the current financial year so far, according to the company
This article was originally published on Printingtalk on 6 Jun 2003 at 8.00am (UK)
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The second quarter recorded 769 million Euros, whilst the first quarter saw 602 million Euros.
Incoming orders in the period under review stood at 2.73 billion Euros - 13 per cent up on the same period of the previous year (2.43 billion Euros).
"The growth in the global economy also increased capacity utilisation in printshops.
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We will increase sales in the continuing operations and will attain our year-end objectives as planned," said Bernhard Schreier, Heidelberg's chief executive officer.
The operating result of the Heidelberg Group was 69 million Euros in the third quarter (previous year - 38 million Euros), a clear improvement on the results of the previous quarters, which showed 27 million Euros in the second quarter and 21 million Euros in the first quarter.
In the first nine months overall, the group recorded a positive operating result of 75 million Euros compared to the previous year's 37 million Euros.
"By realigning the Heidelberg Group and applying consistent measures to reduce structural costs, we have succeeded in increasing our operating return on sales to eight per cent within the third quarter," said the company's chief financial officer, Dr Herbert Meyer.
"To strengthen our competitiveness we plan to further reduce manufacturing costs, with particular emphasis on personnel costs.
Discussions with employee representatives are already underway," he added.
Including the losses of 62 million Euros for the discontinued digital and web systems divisions, the loss after taxes for the Heidelberg Group after nine months was 18 million Euros compared to a loss of 725 million Euros previously.
"We have succeeded in further improving Heidelberg's financial strength through tight asset management.
This is reflected in the free cashflow of 138 million Euros in the third quarter," said Dr Meyer.
As of December 31, 2004, the Heidelberg Group had a workforce of 18,800 people worldwide compared to 23,400 the year before.
That fall was partly due to the disposal of the digital and web systems divisions in the current financial year and the workforce reduction as part of the company's efficiency-enhancing programme.
The company said that performance in the press and post-press divisions improved.
In the press division, sales rose by 10 per cent in the first nine months to 1.94 billion Euros.
Incoming orders in the period under review increased by 14 per cent on the previous year to 2.4 billion Euros.
The operating result in the third quarter alone stood at 61 million Euros, compared to 24 million Euros during the previous year, demonstrating the additional earnings potential associated with growing volumes said the company.
In the post-press division, sales over the nine-month period amounted to 244 million Euros and incoming orders rose by seven per cent to 280 million Euros.
Cost-cutting measures enabled the division to achieve a positive operating result of two million Euros in the third quarter.
In all regions, incoming orders at the end of the nine-month period were up on the previous year - by around 13 percent on average, added Heidelberg.
The comany concluded that the outlook for the current financial year remained unchanged, with the company aiming for an increase in sales of at least five per cent over the previous year on a comparable basis.
The Company is projecting an improvement in earnings over the previous year.
Its target is to achieve an operating return on sales, including all special effects, of five per cent and overall, Heidelberg said it is projecting net profit in at least the mid-double-digit million Euro range.
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