At €660m, sales generated by the Heidelberg Group in the first three months (April 1 to June 30) were 10 per cent up on the comparable figure for the previous year (continuing operations previous year: €602m). Incoming orders in the first quarter were €886m (continuing operations previous year: €1.14bn, due to drupa in May 2004).

The company succeeded in increasing incoming orders significantly over the fourth quarter of financial year 2004/2005 (Q4 2004/2005: €780m). At €1.23bn, the order backlog at the end of the first quarter was up on the order backlog as at March 31, 2005 (€1.05bn) thanks to the positive level of incoming orders.

“The new financial year has got off to a good start in all regions,” says Bernhard Schreier, CEO of Heidelberger Druckmaschinen AG. “The global increase in demand for print products had a positive effect on our performance. The emerging markets in particular continue to show robust growth, currently accounting for more than 40 per cent of incoming orders.”

The Heidelberg Group recorded an operating result of €7m in the period under review (continuing operations previous year: a loss of €21m). The net profit in the first quarter broke even (previous year including discontinuing operations: a loss of €63m).

“In the first quarter it is already clear that, thanks to the measures we have introduced, we have significantly improved the profitability in our divisions,” says Dr. Herbert Meyer, Heidelberg CFO. “Nonetheless, exchange rate movements and developments in raw material and energy prices still present a risk.”

As of June 30, 2005, the Heidelberg Group had a workforce of 18,583 worldwide (previous year: Approx. 21,200 including the Web Systems Division).

In the Press Division (offset printing), sales rose to €567m in the first three months (previous year:€513m). Incoming orders in the period under review were €788m (previous year: €1.03bn). The operating profit in the first quarter totaled €7m (previous year: loss of €22m).

In the Postpress Division (finishing), quarterly sales were €80m (previous year: €70m). Incoming orders were €85m (previous year: €98m). The operating result in the period under review improved over the previous year’s to a loss of €4m (previous year loss €8m).

In all regions, sales in the first quarter were up on the comparable figure of the previous year, except in Eastern Europe where they were Euro eight million lower than in the same quarter of the previous year.

Heidelberg expects to see moderate growth in sales for the current financial year 2005/2006 on a comparable basis. During the current financial year, Heidelberg is planning to surpass both the result of operating activities of financial year 2004/2005 of €167m and the after-tax result of €61m.

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