Heidelberg Reports Sales of Euro 5 billion, Profits after tax Euro 201 million
Press release from the issuing company
5/13/02 -- The results recorded by Heidelberg for the 2001/2002 fiscal year ended March 31, 2002 were in line with expectations. Sales by the Heidelberg Group of around Euro 5 billion were some 5 percent down on the record level of the previous year (Euro 5.3 billion). The operating profit for the year was Euro 356 million (previous year: Euro 506 million) and the preliminary annual net profits Euro 201 million (previous year: Euro 283 million). "We have thus reached the targets for the 2001/2002 fiscal year that we set ourselves last October", stated Bernhard Schreier, Heidelberg's Chief Executive Officer . "The drop in sales and profits has been shaped by the world economic slowdown, which has been particularly prevalent in the US." Mr. Schreier nevertheless added that he was satisfied with the company's progress in what are difficult times.
Orders received for the 2001/2002 fiscal year fell just short of Euro 4.6 billion (previous year: Euro 5.5 billion), with levels stabilizing in the fourth quarter. "Orders received at IPEX in Birmingham in April 2002 were worth around Euro 260 million and gave us a good start to the new fiscal year", explained Chief Financial Officer Dr. Herbert Meyer. Nevertheless, he stated, the world economy was still unlikely to experience any tangible recovery before the second half of 2002 and Heidelberg as well as the entire industry would then start feeling the benefit.
As of March 31, 2002, the Heidelberg Group had a workforce of some 25,500 worldwide.
Different rates of progress in the divisions and regions
Sales by the Digital division incl. Prepress fell by some 15 percent to Euro 648 million (previous year: Euro 763 million). The drop in sales and the further expansion of the sales and service network in the future growth market of color digital printing resulted in the operating loss increasing from Euro 64 million to Euro 107 million.
Sales in the Web Systems division were Euro 691 million (previous year: Euro 801 million), almost 14 percent below the previous year's figure. The decline in sales and the restructuring measures carried out in the US contributed to an operating loss of Euro 122 million. In the fourth quarter, this division´s operating result reached break-even.
Sales in the Sheetfed division were stable at Euro 3.3 billion. The operating profit climbed 5 percent to Euro 569 million (previous year: Euro 543 million).
The Finishing division recorded sales for the year of Euro 378 million (previous year: Euro 408 million). This decrease in sales impacted on the operating profit which fell from Euro 27 million to Euro 16 million.
Sales in some regions were strongly affected by the cooldown in the global economy. Customers´ reluctance to invest was particularly apparent in the NAFTA region. As a result, Heidelberg Group sales in this region fell by 18 percent to Euro 1.5 billion (previous year: Euro 1.8 billion). In contrast, sales in Central and Eastern Europe remained at nearly the same high level as the previous year. Business in the Asia/Pacific region (especially China), Central and South America and the Middle East region was very pleasing, with sales up by as much as 17 percent.
Heidelberg will announce further details of the 2001/2002 fiscal year at its Annual Accounts Press Conference on July 2, 2002 (10:00 am, Print Media Academy, Heidelberg).
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