Heidelberger Druckmaschinen AG (Heidelberg) (FWB: HDD) is
publishing its financial statements for the first nine months (April 1
to December 31, 2007) of financial year 2007/2008. At EUR 2.568
billion, Heidelberg Group sales during the period under review almost
matched last year´s high level (previous year: EUR 2.589 billion).
After adjustments for exchange rate movements, sales were 2 percent
up. Incoming orders after nine months amounted to EUR 2.824 billion
(previous year: EUR 2.913 billion). The success of the traditional
Open House events held in October and November at various sales
locations in Germany helped the Heidelberg Group achieve incoming
orders totaling EUR 958 million in the third quarter alone. In terms
of incoming orders, this made the third quarter the strongest so far
of the current financial year and represented a 4 percent improvement
over last year´s figure. As a result of the volume of incoming orders
in the third quarter, the order backlog at December 31, 2007 was
slightly up on the previous quarter´s level at EUR 1.196 billion
(previous quarter: EUR 1.184 billion).
"As a result of the way business has gone over the past few months
and in spite of recent developments in the U.S., we expect to match
the previous year´s sales of around EUR 3.8 billion in the current
financial year and to attain a result of operating activities in
excess of last year´s adjusted figure of around EUR 300 million," said
Heidelberg CEO Bernhard Schreier.
The Heidelberg Group recorded an operating result of EUR 177
million in the period under review (previous year: EUR 202 million).
This corresponds to an operating return on sales of around 7 percent.
The previous year´s figure of EUR 202 million included a positive
one-time effect amounting to around EUR 25 million from the sale of
Linotype GmbH. The net profit was EUR 87 million (previous year:
EUR 180 million). In the third quarter last year, Heidelberg posted
tax revenue of EUR 73 million from a corporation tax credit.
"In the third quarter alone, we achieved a sound operating return
on sales of 8.7 percent," said Heidelberg CFO Dirk Kaliebe. "For the
fourth quarter of financial year 2007/2008, we are currently expecting
sales well above the EUR 1 billion mark, which means we will match the
previous year´s figure. We are predicting an increase in the previous
year´s adjusted net profit of 3.8 percent to between 4.5 and 5.0
percent of sales," he added.
At December 31, 2007, the Heidelberg Group had a workforce of
19,508 worldwide (19,171 at March 31, 2007). Overall, the workforce
increased by 337 during the financial year. Adjusted by the number of
trainees, the increase is 187, primarily employed in production.
Results in the divisions and regions
In the Press Division (offset printing), sales stood at a level of
EUR 2.238 billion in the period under review (previous year: EUR 2.251
billion). Incoming orders amounted to EUR 2.484 billion (previous
year: EUR 2.551 billion). The operating result after nine months was
EUR 150 million (previous year: EUR 157 million including one-time
effects).
In the Postpress Division (finishing), sales after three quarters
amounted to EUR 307 million (previous year: EUR 309 million). Incoming
orders totaled EUR 317 million (previous year: EUR 333 million). In
the period under review, an operating result of EUR -2 million was
recorded (previous year: EUR 7 million).
In the Financial Services Division, we have once again been able
to lower the capital commitment compared to previous quarters through
the consistent support of global, regional and local financing
partners. An operating profit of EUR 29 million was recorded in the
period under review (previous year: EUR 38 million).
Sales and incoming orders after nine months were slightly below
the previous year´s high level in the EMEA, North America, Latin
America and Asia/Pacific regions.
There are three main reasons for the North America region being
down on the previous year´s incoming order figures for the third
quarter. Firstly, the Graph Expo trade show took place during this
quarter last year. Secondly, the continuing weakness of the U.S.
dollar is making German suppliers less competitive on this market in
particular. Thirdly, the difficulties on the real-estate market and
the associated speculation regarding a possible recession have also
affected the North American print media industry´s readiness to
invest.
In the Asia/Pacific region, incoming orders for the third quarter
were significantly up on the previous year´s figures on the Chinese
market. At our site in Qingpu, near Shanghai, we have made a start on
our plans for the third stage of expansion. Sales in the entire region
remained below the previous year´s third-quarter and cumulative
nine-monthly figures only due to less favorable exchange rates.
The Eastern Europe region´s figures after three quarters were
significantly up on the previous year. Heidelberg is enjoying
particular success on the region´s two main markets - Russia and
Poland.
Germany succeeded in increasing its sales and is on course for a
record year.
Heidelberg strengthened its position in the EMEA region in the
third quarter by taking over the sales activities of consumables
supplier Stielund & Taekker in Denmark and Sweden, together with
around 35 employees. This put Heidelberg in a position to establish
itself as the company with the highest sales of consumables in the
print media industry in the Nordic and Baltic countries.
Heidelberg has also combined all global business with consumables
under the name "Saphira". The company now offers a wide-ranging
portfolio for standard print jobs and special applications and covers
the full gamut of production requirements in prepress, press and
postpress.
Outlook for full financial year 2007/2008
Heidelberg is currently projecting fourth-quarter sales
substantially in excess of EUR 1 billion for financial year 2007/2008
so that, despite the economic uncertainties in the U.S. and the impact
of a strong euro, particularly in the U.S. and the Asia/Pacific
region, the company will achieve sales of around EUR 3.8 billion for
the year as a whole.
Worsening exchange rate structures, higher personnel expenses and
higher outlays in the raw material and energy sectors have had a
particularly negative effect on the result and will continue to do so
in the future. Heidelberg has successfully countered this through its
efficiency-boosting and cost-reduction measures in all areas, which
have compensated for these burdens. As a result, the company is on
course to exceed the previous year´s adjusted operating profit of
around EUR 300 million in the current financial year.
As things stand at present, the financial result will be down on
the previous year due, among other things, to changed capital market
conditions. Favored by developments such as the tax reform and
internal optimization measures regarding the tax rate, the company
intends to boost net profit from an adjusted 3.8 percent of sales last
year to between 4.5 and 5.0 percent for the current financial year.
Heidelberg is also looking for free cash flow to again account for
4 percent of sales during the current financial year.
The situation in the coming financial years will largely depend on
the further development of the global economy and the course of the
two-week drupa 2008 trade show, which gets under way on May 29.
Heidelberg will continue to focus on its strategic approach of further
actively expanding services and placing priority on package printing.
The complete report for the third quarter of 2007/2008 will be
available online at www.heidelberg.com.
The tables showing the figures as well as further information can
be downloaded from the Press Lounge at www.heidelberg.com.
Other dates:
The scheduled publication date for the preliminary figures for
financial year 2007/2008 is May 7, 2008.
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.
