Heidelberg to take ‘dynamic’ approach

-Nine month results to December 31, 2012 show company is on track to return to profitability by end of 2013/14 financial year, with sales and cashflow growth helping to reduce debt burden

 

- Confirms outlook for 2012/13 and 2013/14 and will be 'dynamic' in focusing portfolio on profitable business segments, ‘just like our successful customers’

 

Heidelberg is on track to achieve its aim of returning to profitability by the end of the 2013/14 financial year, and will continue to focus on becoming a ‘dynamic’ operating a portfolio on profitable business segments.

 

In the third quarter of the 2012/13 year, higher sales and savings from the Focus 2012 efficiency program resulted in a much improved operating result as planned. Quarterly sales were up nine percent on the same period of the previous year, and the operating result excluding special items increased by €23 million to €25 million.

 

Heidelberg said it continues to assume that there will be a clearly positive result of activities excluding special items for the financial year 2012/2013 as a whole.

 

Over one-third of the planned savings from Focus 2012 will already take effect in the current financial year. The expenditures required for this purpose, however, will negatively impact the financial result and the free cashflow in both the current and the forthcoming financial year. 

 

In the coming financial year 2013/2014, the cost reductions resulting from its Focus 2012 initiative will be fully effective for the first time and result in annual savings of around €180 million. The half-year forecast of achieving a net profit for the year remains unchanged.

 

Heidelberg’s chief executive officer Gerold Linzbach (pictured, top) said: ‘The financial year is going according to plan. The third quarter reflects the progress we had expected in terms of earnings.

 

‘We are systematically moving toward our target of returning to profitability by the end of financial year 2013/2014. We are on the right track.’

 

Heidelberg chief financial officer Dirk Kaliebe said: ‘The Focus 2012 efficiency program is progressing according to plan and is significantly improving our profitability.’

 

Linzbach added: ‘We are well aware that a one-time cost-cutting program such as Focus 2012 alone cannot safeguard the future of Heidelberg.

 

‘Just like our successful customers, we must be dynamic in focusing our portfolio on profitable segments. We will ensure this through our organization based on business areas.

 

‘Focus 2012 is highlighting potential for making our structures and processes more efficient on an ongoing basis. We can't fight changes in the industry, so we need to respond quickly and harness the opportunities they present.’

 

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