Heidelberger Druckmaschinen AG (Heidelberg) (FWB: HDD) clearly
increased both 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. "For the current financial year, we
are expecting moderate growth in the volume of business," he added.
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 comparable
basis.
Incoming orders in the financial year just closed were EUR 3.853
billion (previous year: EUR 3.605 billion), around 7 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 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
operating result to EUR 362 million, significantly 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 one-time effects from
asset management of around EUR 60 million, resulting primarily from
the sale of Linotype GmbH and the Research and Development Center in
Heidelberg ("sale and lease back"). During the course of the year,
this helped compensate most of the higher spending on R&D, investments
in new generations of printing presses, more unfavorable exchange
rates, and a decline in sales in China.
The net profit climbed to EUR 263 million (previous year: EUR 135
million) and included a positive one-time effect in the form of a
corporate income 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 (previous year: EUR 149 million) as a
result of tight asset management.
"Last financial year, we once again saw a significant improvement
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 strengthening the
Company's sustainable profitability. As described in the outline of
prospects, we expect business to continue to develop positively due to
the stability in the industry in most regions and the Heidelberg
Group's improved cost structures," he added.
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), sales in the financial
year just closed rose by approx. 6 percent to EUR 3.321 billion.
Incoming orders in the period under review increased by 7 percent on
the previous year to EUR 3.367 billion. The operating result for
2006/2007 was EUR 314 million (previous year: EUR 248 million).
In the Postpress Division (finishing), sales in the period under
review rose by around 12 percent to EUR 445 million. Incoming orders
increased by some 9 percent to EUR 449 million. The operating result
of this division for the period under review was EUR 7 million
(previous year: loss of EUR 3 million).
In the EMEA, North America, Latin America and Eastern Europe
regions, 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 import duty
exemption in China, which took effect from the second quarter,
postponed incoming orders and sales.
Dividend proposal
At the Annual General Meeting on July 26, 2007, the Management
Board and the Supervisory Board will propose increasing the dividend
from last year's level of EUR 0.65 per share to EUR 0.95 per share for
2006/2007.
Prospects for financial year 2007/2008: Moderate increase in sales
and net profit roughly equivalent to 5 percent of sales expected
During the next three-year period, from 2007/2008 to 2009/2010,
the Company expects to increase total sales by 10 to 15 percent. In
the current financial year 2007/2008, Heidelberg predicts a moderate
growth in sales in the run-up to drupa 2008.
In 2006/2007, the year under review, the result of operating
activities included positive one-time effects amounting to around EUR
60 million. In the current financial year 2007/2008, Heidelberg is
looking to increase the pure operating result by 10 to 15 percent
compared to the adjusted value for the year under review of EUR 302
million. This represents a target result of operating activities for
2007/2008 of EUR 330 million to EUR 345 million.
Also benefiting from the positive effects of the German tax reform
and from internal optimizations to ease the tax burden, the net profit
will continue to grow. Overall, the Company predicts an increase in
the net profit - excluding one-time effects - of around 4 percent of
sales for the year under review to about 5 percent in the current
financial year 2007/2008.
Share buyback
On November 7, 2006, Heidelberger Druckmaschinen AG began a second
share buyback program which plans up to five percent of the Company's
capital stock - a maximum of 4,152,535 shares - to be repurchased 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 cancelled 3,322,658 shares from the first and
second buyback programs. The Company's capital stock 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:
The Annual General Meeting of Heidelberger Druckmaschinen AG will
be held at the Congress-Center Rosengarten in Mannheim on July 26,
2007.
The scheduled publication date for the financial statements for
the first quarter of 2007/2008 is August 2, 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.