Preliminary figures indicate that Heidelberger Druckmaschinen AG
(Heidelberg) (FWB: HDD) increased sales and earnings in financial year
2006/2007 (April 1, 2006 to March 31, 2007). "For the fourth year in
succession, we have been able to draw on the upswing in the global
economy and the resultant upward trend in our industry", stated
Bernhard Schreier, CEO of Heidelberger Druckmaschinen AG.
Preliminary sales by the Heidelberg Group during the period under
review climbed six percent to EUR 3.803 billion (previous year: EUR
3.586 billion). The fourth quarter alone returned sales of EUR 1.214
billion, the highest level in the last five years on a like for like
basis.
Preliminary incoming orders in the financial year just closed were
EUR 3.853 billion (previous year: EUR 3.605 billion), and thus around
seven percent up on the previous year. The Heidelberg Group thus
succeeded in increasing incoming orders for the third successive year.
At around EUR 1 billion, the preliminary order backlog at March 31,
2007 was on a par with the previous year's high level.
In the period under review, the Heidelberg Group increased its
preliminary operating profit to EUR 362 million, 30 percent up on the
previous year (previous year: EUR 277 million). This produced an EBIT
margin of 9.5 percent of sales (previous year: 7.7 percent). A number
of factors contributed to this result, including positive
non-recurring asset management items of around EUR 60 million,
resulting primarily from the sale of Linotype GmbH and the R&D
building in Heidelberg ("sale and lease back"). During the course of
the year, this helped to compensate the higher spending on R&D,
investments in new generations of printing presses, less favorable
exchange rates and a decline in sales in China.
The preliminary net profit climbed to EUR 263 million (previous
year: EUR 135 million) and included a positive non-recurring item in
the form of a corporation tax credit of EUR 73 million. This credit
relates to a change in the way existing tax credits are treated and
has no impact on the level of future dividends. The free cash flow
also increased substantially to EUR 229 million as a result of tight
asset management.
"Last financial year we achieved strong improvements in earnings
and free cash flow and in essence reached the targets we had set
ourselves", stated Heidelberg CFO Dirk Kaliebe. "All in all, we have
taken another sizeable step towards bolstering the company's
sustainable profitability. "
As of March 31, 2007, the Heidelberg Group had a workforce of
19,171 worldwide (previous year: 18,436). This figure includes new
appointments - primarily at Heidelberg production facilities - and,
for the first time, 156 employees from the initial consolidation of
BHS Druck- und Veredelungstechnik GmbH, Weiden, a subsidiary of the
Gallus Group.
Results in the Press and Postpress Divisions:
In the Press Division (offset printing), preliminary sales in the
financial year just closed rose by approx. six percent to EUR 3.321
billion. Preliminary incoming orders in the period under review
increased by seven percent on the previous year to EUR 3.367 billion.
The preliminary operating profit for 2006/2007 was EUR 314
million (previous year: EUR 248 million).
In the Postpress Division (finishing) preliminary sales in the
period under review rose by around 12 percent to EUR 445 million.
Preliminary incoming orders increased by some nine percent to EUR 449
million. The preliminary operating profit of this division for the
period under review was EUR 7 million (previous year: Minus 3 million
EUR).
In the EMEA, North America, Latin America und Eastern Europe
regions, preliminary sales and incoming orders showed a considerable
improvement on the previous year. In the Asia/Pacific region figures
fell short of the high levels of the previous year. The suspension of
the import duty exemption in China, which took effect since the second
quarter, postponed incoming orders and sales. The restoration of the
import duty exemption on March 1, 2007 suggests that the order and
supply situation for the Chinese market will start to show improvement
in the current 2007/2008 financial year.
Dividend proposal and outlook
The dividend proposal - for approval by the Annual General Meeting
on Thursday, July 26, 2007 - and the outlook for the 2007/2008
financial year will be announced at the Heidelberg Annual Press
Conference on Wednesday, June 13, 2007.
Share buyback
On November 7, 2006, Heidelberger Druckmaschinen AG began a second
share buyback program which plans to repurchase up to five percent of
the Company's share capital - a maximum of 4,152,535 shares - on the
stock market by January 2008 at the latest. By the end of the
2006/2007 financial year, on March 31, 2007, 2,419,422 shares had been
bought back through this program. At the end of the financial year
just closed, Heidelberg had cancelled 3,322,658 shares from the first
and second buyback programs. The Company's share capital now amounts
to EUR 204,103,795.20 and is divided into 79,728,045 bearer shares.
The tables showing the figures as well as further information can
be downloaded from the Press Lounge at www.heidelberg.com.
Other dates:
Heidelberg's complete annual accounts for 2006/2007 financial year
will be presented at the Annual Press Conference on June 13, 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.
