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Heidelberg Presents Nine-Month Figures: Sales Up

Friday, February 03, 2006

Press release from the issuing company

The following information relates to the continuing operations of the Heidelberg Group. These include the Press, Postpress and Financial Services divisions. The Digital Division was sold and deconsolidated on May 1, 2004, the Web Systems Division on August 6, 2004. All figures for the previous year mentioned in this press information have been adjusted to ensure that the figures stated provide a basis for comparison. - incoming orders for third quarter 17 percent up on previous year - Sales nine percent up on previous year's figure after nine months - Operating result almost double at 143 million Euro - Outlook for full financial year 2005/2006 unchanged The positive trend for sales and incoming orders continued at Heidelberger Druckmaschinen AG (Heidelberg) in the third quarter of financial year 2005/2006. Sales by the Heidelberg Group amounted to 2.44 billion Euro in the first nine months (April 1, 2005 to December 31, 2005), nine percent up on the previous year's figure for the same period (previous year: 2.23 billion Euro). At 908 million Euro, sales in the third quarter alone were roughly six percent up on the corresponding quarter of the previous year (previous year: 860 million Euro). Incoming orders in the period under review amounted to 2.73 billion Euro, the same high level as the previous year (incoming orders for previous year including drupa: 2.73 billion Euro). Incoming orders in the third quarter were significantly up on the previous year. At 965 million Euro, they exceeded incoming orders for the same quarter the previous year by approximately 140 million Euro or around 17 percent (previous year: 823 million Euro). The order backlog as at December 31, 2005 was 1.32 billion Euro. "The favorable business development in the print media industry has stabilized," said Heidelberg CEO Bernhard Schreier. "Although the economic recovery hasn't extended to all regions, Heidelberg's overall sales and results were significantly up on the previous year's figures. We are very confident of achieving the target set in our annual forecast." In the period under review, the Heidelberg Group nearly doubled the previous year's operating result to 143 million Euro (continuing operations previous year: 75 million Euro). The third quarter alone brought an operating profit of 72 million Euro (continuing operations previous year: 69 million Euro). This corresponds to an operating return on sales of 7.9 percent for the third quarter and around 5.9 percent for the whole of the period under review. The net profit after nine months was 67 million Euro (previous year, including discontinuing operations: minus 18 million Euro). "After several good quarters in a row, Heidelberg's figures demonstrate that we have once again significantly improved our profitability," stated Heidelberg CFO Dr. Herbert Meyer. "However, we still need to keep an eye on the Heidelberg Group's cost structure. Risks such as exchange rate movements and raw material and energy prices are still very much a factor." As at December 31, 2005, the Heidelberg Group had a workforce of around 18,700 worldwide (previous year: approximately 18,800). Nine-month sales and results show significant improvement in divisions In the Press Division (offset printing), sales rose by roughly ten percent to 2.13 billion Euro in the first nine months (previous year: 1.94 billion Euro). Incoming orders in the period under review amounted to 2.4 billion Euro, the same high level as the previous year. At 120 million Euro, the operating result for the nine months virtually doubled (previous year: 61 million Euro). In the Postpress Division (finishing), nine-month sales amounted to 271 million Euro, 11 percent up on the equivalent figure 12 months ago (previous year: 244 million Euro). Incoming orders totaled 294 million Euro (previous year: 277 million Euro). The operating result in the period under review improved to two million Euro (previous year: minus ten million Euro), giving the Postpress Division its first overall positive result. Sales up in virtually all regions Compared to the same quarter one year previously, figures for the third quarter remained stable or improved in all regions except North America. A comparison of the sales figures for the nine-month period shows increases for all regions except Eastern Europe, the only region to have a slightly lower figure. Share buyback On November 8, 2005, the Management Board of Heidelberger Druckmaschinen AG decided on a share buyback program covering up to five percent of its capital stock. As at December 31, 2005, we had repurchased 970,000 shares, and an additional 53,217 shares which are being used for an employee share purchase program. This means that, in total, 1.2 percent of the shares outstanding have been repurchased. Outlook for financial year 2005/2006 unchanged The company expects to see moderate growth in sales for the current financial year 2005/2006 on a comparable basis. During the current financial year, Heidelberg is planning to surpass both the result of operating activities for financial year 2004/2005 of 167 million Euro and the after-tax result of 61 million Euro. The tables showing the figures can be downloaded from the Press Lounge at www.heidelberg.com.

 

 

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