Product category:
Printing Presses and Machinery (New and Used, Service and Repair)
News Release from: Heidelberg | Subject: Printing presses, systems and services
Edited by the Printingtalk Editorial
Team on 01 April 2008
Heidelberg Sales 3% Down - Results Not
Confirmed
Heidelberg is now forecasting that group sales will be three per cent lower than the previous year in an announcement released last night.
The company said that because of difficult market conditions it will not reach its predicted sales and operating result (EBIT) for the year ending March 31, 2008, whilst net profit will accordingly decline And because of current worldwide economic conditions, the company has not ruled out the possibility that jobs in the company could be affected and that the company's structure could be examined
This article was originally published on Printingtalk on 6 Jun 2003 at 8.00am (UK)
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At the same time, orders did not meet the company's expectations during the last quarter of the fiscal year before the Drupa 2008 exhibition.
The company's performance at the show and market feedback during the event could provide firm indications of how the market might perform in the near future.
According to Heidelberg's latest preliminary calculations, sales will be below the EUR3.8 billion performance for 2006 - 2007.
That will also have a negative impact the operating result (EBIT) but the company added that it cannot defined that performance at this stage.
However, the company added that the result would not fall below EUR260 million.
During yesterday's regular supervisory board meeting, Heidelberg's management board said it presented its measures to reduce the company's dependence on currency fluctuations and on the cyclical nature of the advertising industry.
In spite of market conditions, Heidelberg said it will accelerate its expansion of production facilities and its purchasing activities outside Europe, as well as the development of its service business.
The company added that it will define those strategic directions in detail after Drupa for subsequent implementation.
Heidelberg added that such business development is critical in the light of the global economic slow down and if that position is maintained after Drupa, the company will make adjustments in personnel and structure according to demands on capacity.
Bernhard Schreier, Heidelberg's chief executive officer, said: "The course of the upcoming Drupa trade show will not change our strategic directions.
However, the exhibition will provide us with important indications of our customers' investment behaviour.
We have immediately broadened our already implemented measures to adjust our cost structures to the current business development.".
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