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Printing Presses and Machinery (New and Used, Service and Repair)
News Release from: Heidelberg
Edited by the Printingtalk Editorial
Team on 26 April 2005
Heidelberg Profit Up But 100m Euro
Savings To Come
Heidelberg's sales have increased by three per cent to 3.2 billion Euros, with incoming orders up by eight per cent to 3.5 billion Euros.
Heidelberg's sales have increased by three per cent to 3.2 billion Euros, with incoming orders up by eight per cent to 3.5 billion Euros The company, in reporting its results for the 2004-2005 year ended March 31, said that a 61m Euros profit was achieved and that the company's free cash flow of 154m Euros was well above its expectations
This article was originally published on Printingtalk on 4 Feb 2004 at 8.00am (UK)
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Heidelberg's chief financial officer, Dr Herbert Meyer, said: "After controversial and difficult negotiations, we have arrived at a solution that is acceptable to all parties.
This solution will raise earnings in the long term and will help to further increase the competitiveness of the Heidelberg Group." The savings would help cushion the negative effects of price increases for materials and the strong Euro, he added.
Bernhard Schreier, the chief executive officer of Heidelberg, said: "Even if the markets and the global economy did not exhibit the robust growth that we had hoped for, particularly in recent months, the figures nevertheless show that we are on the right track and that our measures are beginning to take hold." The group's preliminary sales grew 3.207 billion Euros, compared with the previous year's 3.114 billion Euros, and by five per cent after adjustments for exchange rate movements.
Sales of the largest part of the group, the offset press division increased by five per cent to 2.797 billion Euros, or by seven per cent after adjustments for exchange rate movements.
Incoming orders in the financial year just closed were Euro 3.508 billion compared to the previous year's 3.247 billion Euros and the order backlog at March 31, was noticeably higher than one year ago, added the company, with it standing at more than one billion Euros and, consequently, was almost 300 million Euros higher than at the end of 2003-2004.
Dr Meyer, said: "The preliminary operating profit - including the operating loss from Nexpress, improved from 10 million Euros to about 160 million Euros.
Through the deep restructuring of Heidelberg we achieved this major improvement in earnings, which will have continuing effects." The preliminary operating profit of the continuing operations improved by 33 million Euros to 207 million Euros, or 6.5 per cent on sales.
The preliminary 61m Euros net profit for the group compared with the previous year's 695 million Euros, which corresponded to a return on sales after tax of 1.8 per cent, he added.
As of March 31, the Heidelberg Group had a workforce of 18,679 people worldwide compared with the previous year's payroll of 22,782.
Results in the press and post-press divisions improved with the press division's preliminary sales increased to 2.797 billion Euros with incoming orders increased by 10 per cent on the previous year to around 3.087 billion Euros.
The preliminary operating profit for 2004-2005 was 183 million Euros, compared with 151 million Euros in 2003-2004.
In the post-press,or finishing division sales were 348 million Euros with incoming orders at 359m Euros and the operating profit improved to a 2m Euros loss, compated with a defecit of 18m Euros million previously.
Sales in all regions were up on the previous year, with the exception of North America.
Incoming orders improved on last year's figures in all regions, climbing around eight per cent on average, added the company.
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