Heidelberger Druckmaschinen AG / Preliminary Results/Development of Sales
07.05.2008
Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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- Heidelberger Druckmaschinen AG: Business hit by struggling global economy
and strong euro
- No market improvement on horizon for current financial year 2008/2009
- First quarter 2008/2009: Sales are expected to be down on previous years
figure; operating result (EBIT) predicted to be negative
It is already predictable that the sales of Heidelberger Druckmaschinen AG
(Heidelberg) for the first quarter of financial year 2008/2009 will be down
on the previous years figure, and that the operating result (EBIT) will be
negative. Like the first quarter 2008/2009, the entire fiscal year will be
affected by non-recurring expenditures for drupa, the start-up of series
production for a number of new products and the strong euro. For these
reasons, the operating result for the entire fiscal year 2008/2009 will be
down on previous fiscal years figure.
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Information and Explaination of the Issuer to this News:
Preliminary figures for financial year 2007/2008:
Sales and operating result down on last year
Business hit by struggling global economy and strong euro
No market improvement on horizon for current financial year 2008/2009
First quarter 2008/2009: Sales are expected to be down on previous years
figure; operating result (EBIT) predicted to be negative
Management Board drawing up package of measures
Proposed dividend matches last years EUR 0.95
Market conditions worsened considerably for Heidelberger Druckmaschinen AG
(Heidelberg) in financial year 2007/2008 (April 1, 2007 to March 31, 2008),
with sales, operating result and net profit all down on the previous years
levels. 'Poorer economic prospects have taken their toll over the past
financial year, in particular during the second six months,' stated
Heidelberg CEO Bernhard Schreier. 'This has led to a reluctance to invest
in a number of regions,' he added.
There is no market improvement on the horizon for the current financial
year 2008/2009. With drupa the hugely important trade show running from
May 29 to June 11, 2008 still to come, it is difficult to predict how
sales for financial year 2008/2009 will develop. Consequently, Heidelberg
will be publishing its sales forecast for the current financial year at the
beginning of August with its figures for the first quarter.
However, it is already predictable that the sales for the first quarter of
financial year 2008/2009 will be down on the previous years figure, and
that the operating result (EBIT) will be negative. Like the first quarter
2008/2009, the entire fiscal year will be affected by non-recurring
expenditures for drupa, the start-up of series production for a number of
new products and the strong euro. For these reasons, the operating result
for the entire fiscal year 2008/2009 will be down on previous fiscal years
figure.
'After drupa but before the Annual General Meeting on July 18, we will
announce appropriate measures to secure our leading market position and
financial performance in the long term,' stated Schreier. 'Our aim is to
improve our cost structures and lessen the effect of exchange rates in the
medium term by internationalizing purchasing and production. We will also
be stepping up our service and consumables operations to further reduce our
dependency on economic cycles,' he added.
Preliminary figures for financial year 2007/2008
Preliminary sales by the Heidelberg Group for the year as a whole totaled
EUR 3.670 billion, 3.5 percent down on the previous years figure (previous
year: EUR 3.803 billion). Business slowed in the fourth quarter in
particular due to the effects on the world economy of the financial crisis
in the U.S. and customers reluctance to make investments in the run-up to
the all-important drupa trade show.
Preliminary incoming orders in the financial year just closed amounted to
EUR 3.649 billion, around 5 percent down on the previous years figure
(previous year: EUR 3.853 billion). Whereas the high volume of orders
achieved in the previous year was exceeded in Germany, fears of a recession
and further effects of the credit crunch made U.S. customers less ready to
invest. Business was also less than satisfactory in the United Kingdom and
Japan. On a more positive note, orders were boosted by the recovery in the
Chinese market.
The preliminary order backlog at March 31, 2008 was EUR 874 million
(previous year: EUR 1.018 billion).
In the period under review, the Heidelberg Group recorded an operating
result of EUR 268 million (previous year, adjusted for positive one-time
effects: EUR 302 million). This represents an operating return on sales of
7.3 percent (adjusted value for the previous year: 7.9 percent). The
previous years figure was boosted by the sale of Linotype GmbH and the R&D
Center in Heidelberg ('sale and lease back').
The preliminary net profit amounted to EUR 142 million (previous year,
adjusted for positive one-time effects: EUR 144 million). At EUR 215
million, the free cash flow remains at a high level (previous year: EUR 229
million). Based on sales, Heidelberg was able to reduce the working capital
by 1.1 percentage points to 32.5 percent.
'We have once again achieved a good free cash flow in a difficult economic
situation. Based on the preliminary figures of financial year 2007/2008 the
Management Board intends to propose the Supervisory Board and subsequently
the Annual General Meeting a dividend of EUR 0.95, which matches last
years dividend,' said Heidelberg CFO Dirk Kaliebe.
Performance in the divisions and regions
In the Press Division (offset printing), preliminary sales were slightly
down on the previous year at EUR 3.213 billion (previous year: EUR 3.321
billion). Preliminary incoming orders fell by 5 percent to EUR 3.2 billion
(previous year: EUR 3.367 billion). At EUR 239 million, the preliminary
operating result for this division was below the previous years adjusted
figure of EUR 254 million.
The Postpress Division (finishing) failed to meet the targets set. Exchange
rate movements and the reluctance of U.S. printshops to invest were the
main reasons for the divisions preliminary sales, incoming orders and
operating result falling below the previous years level. Preliminary sales
amounted to EUR 427 million (previous year: EUR 445 million), preliminary
incoming orders were EUR 419 million (previous year: EUR 449 million), and
the preliminary operating result EUR -7 million (previous year: EUR 7
million).
In the EMEA, North America, Latin America, and Asia/Pacific regions, sales
and incoming orders either matched the previous years level or fell below
it. Sales and incoming orders only climbed significantly in the Eastern
Europe region. Growth was particularly strong in Russia in the year under
review. It was a different story for the Asia/Pacific region where, despite
the recovery in the Chinese market, the figures fell below the previous
year due to the extremely unfavorable currency situation for European
suppliers in Japan. Incoming orders slackened off in the North America
region, in particular in the second half of the year.
At March 31, 2008, the Heidelberg Group had a workforce of 19,596 worldwide
(previous year: 19,171). Most of the new appointments were in the field of
production and global sales.
Other dates:
The scheduled publication date for the Annual Report 2007/2008 is June 10,
2008. As this coincides with the drupa trade show, a press release will
replace the usual press conference.
For the table with the figures as well as further details, visit the
Internet Press Lounge at www.heidelberg.com.
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.
Contact:
Heidelberger Druckmaschinen AG
Corporate Communications
Thomas Fichtl
Phone: +49 (0)6221 92 4747
Mobile: +49 (0)173 3186947
Fax: +49 (0)6221 92 5069
E-Mail: thomas.fichtl@heidelberg.com
DGAP 07.05.2008
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Language: English
Issuer: Heidelberger Druckmaschinen AG
Kurfürsten-Anlage 52-60
69115 Heidelberg
Deutschland
Phone: +49 (0)6221 92-60 21
Fax: +49 (0)6221 92-51 89
E-mail: investorrelations@heidelberg.com
Internet: www.heidelberg.com
ISIN: DE0007314007
WKN: 731400
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hannover, Düsseldorf, Hamburg, München, Stuttgart
End of News DGAP News-Service
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DGAP-Adhoc: Heidelberger Druckmaschinen AG: First quarter 2008/2009: Sales are expected to be down on previous years figure; operating result (EBIT) predicted to be negative
| Source: EQS Group AG