Heidelberg Reports Q1 Profit Led By Sheetfed Division, No U.S. Recovery Yet
Press release from the issuing company
Losses reported in the Digital, Web and Finishing Segments, but mitigated by strong results in the Sheetfed Division.
- Orders have stabilized and are up on previous quarters
- Sales and operating result below previous year’s figures as expected
- First quarter shaped by uncertain economic climate
August 12, 2002 -- As expected, the figures recorded by Heidelberger Druckmaschinen AG (Heidelberg) for the first three months (April 1 to June 30) of the fiscal year 2002/2003 failed to match those of the previous year. Sales by the Heidelberg Group in the first quarter were around Euro 930 million (previous year: around Euro 1.1 billion). Orders during the same period achieved Euro 1.1 billion (previous year: Euro 1.3 billion). "We have now past the bottom when it comes to orders and were able to improve slightly on the previous two quarters", explained Bernhard Schreier, CEO of Heidelberg. To achieve the year-end targets a pick-up in the second half of the year is still the prerequisite according to the Management Board.
The operating result fell as expected to Euro 21 million during the period under review (previous year: Euro 45 million). The profit after taxes decreased to Euro 12 million (previous year: Euro 29 million). "In the USA in particular, there has not been any tangible improvement yet", stated CFO Dr. Herbert Meyer.
At June 30, 2002, the Heidelberg Group employed some 24,700 staff worldwide.
Developments in the individual divisions
Under Heidelberg's new organization, which is in force since April 1, 2002, sales in the Digital Division are now solely related to black/white and color digital presses. Sales in the first quarter were around Euro 50 million (same period of previous year: Euro 70 million). The operating loss was Euro 21 million (same period of previous year: loss of Euro 16 million).
Plate imaging and workflow activities in the Prepress sector have been integrated into the Sheetfed Division. From now on, it will be possible to develop offset printing solutions that are more uniform, integrated and process-oriented. Sales by this division in the first quarter were about Euro 700 million (same period of previous year: Euro 815 million). The operating result was Euro 74 million (same period of previous year: Euro 91 million).
Sales by the Web Systems Division in the first quarter were approximately Euro 90 million (same period of previous year: Euro 92 million). The operating loss grew to around Euro 30 million (same period of previous year: loss of Euro 24 million) due to restructuring measures.
Compared to the previous year, sales by the Postpress Division increased 5 percent to Euro 100 million. For the first time, these figures included finishing solutions from the web offset sector. The operating result improved from a loss of Euro 6 million to a loss of Euro 2 million (same period of previous year).
Progress in the regions – new structure
During the current fiscal year, the financial reporting paths have been aligned with the new corporate organization for the first time. As a result, Mexico will be included in the Latin America region. In addition, the Central Europe and Middle East/Africa regions have been grouped together for financial reporting aspects.
All in all, sales in almost all regions were impacted heavily by the continuing global uncertainty regarding investments. Business in Asia/Pacific and Eastern Europe showed good growth. Sales in Eastern Europe climbed almost 14 percent to around Euro 75 million.
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