Innovations and orders put Heidelberg on right path

- Drupa to shape 2012/13 results with orders of over €800m expected in Q1

- 2011/12 full-year results in line with expectations previously published
 
Press manufacturer Heidelberg said it is “on the right track with the direction it is taking”, reporting a positive start to the 2012/13 financial year with the launch of various innovations at Drupa 2012 and high order volumes.
 
For the 2011/12 financial year to March 31, 2012, Heidelberg reported net sales of just under €2.6 billion, a 1.3 percent decline on the 2010/11 net sales result.

Sales by region

By region, the Americas were the only markets to record growth, with net sales in North America driving business through the year with 9.3 percent growth, reaching €329 million in 2011/12, and South America growing 1.2 percent, from €162 million to €164 million year-on-year.
 
EMEA remained Heidelberg’s biggest region for sales, although a 5.7 year-on-year decline meant net sales for 2011/12 fell from just over €1 billion to €953 million.
 
The Eastern Europe and Asia-Pacific markets declined by one and 0.2 percent respectively.
 

Incoming orders

Incoming orders shrank seven percent from the end of the 2010/11 year to March 31, 2012, declining to €2.6 billion. Heidelberg said the previous year’s order figure had been boosted by tradeshow successes at IPEX in the UK and ExpoPrint in Brazil.

Incoming orders declined in each region, with EMEA seeing the largest decline at 13 percent, and Eastern Europe and North America recording declines below two percent.

Comparing the first halves, Heidelberg said the 2011/12 result of €1.4 billion topped the level of 2010/11, but the second half of 2011/12 worsened as underlying economic conditions deepened and customers curtailed investment activity in anticipation of Drupa 2012 during the first quarter of the 2012/13 financial year.

2012/13 positivity

Heidelberg will post its 2012/13 first quarter financial results in August, but said it expects to generate incoming orders of more than €800 million due to the success of Drupa.
 
This will result in its highest order value for four years, with higher incoming orders in the first half of the 2012/13 financial year leading to increased sales in the second half.
 
Heidelberg chief executive officer Bernhard Schreier said: ‘The second half of financial year 2011/2012 in particular was shaped by great uncertainty.
 
‘However, the positive results of the leading tradeshow Drupa showed that confidence within the industry is returning and that the reticence to invest is slowly abating.
 
‘At Drupa, Heidelberg presented itself impressively as market leader, innovator and integrator of new technologies. We have developed the right solutions in response to global trends within the industry and have integrated suitable applications from strategic partners – we could thus set us apart from the competition in a clearly positive way.’
 

Further financials

Overall, the company’s operating profit excluding special items remained stable at €3 million, while the financial result improved by €59 million to a loss of €90 million. However, the net loss worsened from €129 million to €230 million.
 
Dirk Kaliebe, chief financial officer at Heidelberg, said: ‘Despite weak development in the industry and non-recurring costs, our operating result held stable compared to the previous year.
 
‘Systematic implementation of the measures in our Focus 2012 efficiency program means we are on track to reach our medium-term profitability targets.
 
‘As we have reduced our working capital through successful asset management in the year under review, we have been able to cut our financing requirements accordingly.
 
‘Our financing structure exhibits appropriate diversification in terms of both financing sources and the maturity profile.
 
‘In the medium- to long-term, Heidelberg therefore has a stable liquidity framework providing sufficient leeway.’
 
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