Heidelberg Publishes Figures for the Third Quarter of 2019/2020
Tuesday, February 11, 2020
Press release from the issuing company
Heidelberger Druckmaschinen AG (Heidelberg) today published its report on the third quarter of 2019/2020, confirming the key figures of the press release published on January 20, 2020.
Heidelberg is in an advanced planning stage with regard to the extensive package of measures announced to sustainably improve profitability and liquidity. Important cornerstones are to be adopted before the end of the current financial year and are expected to show the first positive effects already in the new financial year. The measures include streamlining and focusing the organizational structures more strongly on customer needs and more efficient processes, selling additional non-core areas to focus the product portfolio, and restructuring the international production network to significantly reduce the cost base.
"We are gearing Heidelberg on profitable activities and are launching an innovation initiative to expand our technological leadership in our core business," comments CEO Rainer Hundsdörfer. "This will enable us to consistently adapt to the challenging market conditions, which are currently difficult to predict not least due to the uncertain economic impact of the coronavirus in China, our largest single market.
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Preliminary nine-month figures of January 20, 2020 confirmed
EBITDA excluding restructuring result was € 47 million in the third quarter, compared with € 39 million in the same quarter of the previous year, thanks to non-recurring income of around € 25 million from the sale of the company Hi-Tech Coatings. On the other hand, lower volumes, pressure on margins in the consumables trading business and regional shifts with a less favorable product mix as well as high up-front expenditures in digital printing had a negative impact on business. Cost-cutting measures could not compensate for this development. In the first nine months, EBITDA excluding restructuring result was € 117 million, compared to € 101 million in the previous year. Accordingly, the result before taxes was slightly positive at around € 5 million (previous year: € 1 million), while the result after taxes was slightly negative at € –10 million (previous year: € –2 million). Free cash flow improved after nine months to € –73 million (previous year: € –120 million), the equity ratio was 13.6 percent. Net financial debt totaled € 389 million on the reporting date, and leverage amounted to 1.9.
"We will streamline Heidelberg in organizational terms, divest non-core areas and assets and thus significantly reduce our cost base. With the planned package of measures, we see good potential for significantly improving liquidity and balance sheet quality," added Marcus A. Wassenberg, the company's CFO.
Outlook for 2019/20 as a whole
The company will publish its financial statements and annual report for 2019/20 on 9 June.
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