All Stories
Follow
Subscribe to Heidelberger Druckmaschinen AG

Heidelberger Druckmaschinen AG

Heidelberg increases sales in first half year by just under 5 percent, profits below expectations
Cost-cutting program launched successfully

Heidelberg, Germany (ots)

Following a good first quarter (April
1 to June 30) for fiscal 2001/02 (sales up 8 percent and operating
result up just under 22 percent), the events in the USA had a clear
impact on Heidelberger Druckmaschinen AG's (Heidelberg) second
quarter results. Sales by the Heidelberg Group were Euro 2.3 billion
in the first half year (April 1 - September 30, 2001), around 5
percent up on the same period last year (just under Euro 2.2
billion). The operating result fell during the period by Euro 43
million to Euro 110 million. The profit after tax was Euro 62
million, down Euro 20 million on the first half of the previous
fiscal year.
"Sales in September in particular were poor, being around Euro 100
million below expectations", stated Bernhard Schreier, Heidelberg's
CEO. Web Systems sales were especially weak, being 29 percent down on
last year's figures. The Heidelberg Group received orders during the
first half year of Euro 2.54 billion (17.4 percent below the figure
recorded in drupa year 2000). Incoming orders were up around 25
percent, however, compared to pre-drupa year 1999/2000 (around Euro 2
billion).
As at September 30, 2001, the Heidelberg Group employed around
26,000 staff worldwide.
Developments in the divisions
   Sales for the half year in the Sheetfed Division climbed more than
16 percent to Euro 1.57 billion (previous year: Euro 1.35 billion).
The operating result was Euro 263 million (previous year: Euro 212
million) and thereby exceeded last year's figure by a satisfying 24
percent.
The Finishing Division recorded sales of Euro 176 million
(previous year: Euro 173 million). The profit of Euro 7 million
(previous year: Euro 11 million) just failed to match the high level
achieved for the 2000/01 half year.
Sales and operating results for the Digital and Web Systems
Divisions fell below last year's levels. Sales for the Web Systems
Division were Euro 218 million, down from Euro 307 million the
previous year. The operating loss grew to around Euro 91 million
(previous year: loss of Euro 24 million).
The Digital Division recorded sales of Euro 333 million (previous
year: Euro 364 million). The operating loss was Euro 69 million
(previous year: loss of Euro 46 million). The sales launch of the
NexPress digital color press in September went particularly well.
"With over 80 machines already sold, we will easily exceed our target
of 100 systems for the year as a whole", stated Bernhard Schreier.
This boded well, he explained, for the company's future development.
Progress in the regions quite positive
   A comparison of the regions shows just how severely the current
situation is being impacted by the economic developments in the USA.
Sales in all regions showed positive development, with the exception
of the NAFTA region, where they fell by Euro 137 million or 18.9
percent over the previous year. Sales in the Asia/Pacific Region,
Eastern Europe and Latin America, however, recorded double digit
growth rates. The important Central Europe region grew by just under
9 percent.
Cost-cutting program introduced
   "We are looking to a comprehensive cost-cutting program to drive
the company towards growth and safeguard our earnings potential",
stated Dr. Herbert Meyer, CFO at Heidelberg. To ensure Heidelberg
achieves its target of Euro 100 million savings in the current fiscal
year, fixed-term employment contracts will not be extended, no new
employees will be appointed, overtime will be cut back, and lasting
reductions will be made in administrative costs.
Prospects for fiscal 2001/2002
   In its sales and results forecasts for the year as a whole, the
company had previously assumed that the economic recovery in the USA
would begin in the second half of the current fiscal year.
Developments now suggest there will be a further economic downturn in
the USA with consequences for business in Europe and Asia. "Despite
the cost-cutting measures that have been introduced, we now believe
that last year's results can no longer be matched if customers become
increasingly uneasy about making investments", explained Dr. Herbert
Meyer. He nevertheless anticipated that sales for the second half of
fiscal 2001/02 would be just above the figure for the first half.
"The profit after taxes for the fiscal year as a whole will lie
between Euro 200 and 220 million (Euro 283 million in 2000/01)."
HEIDELBERG-    Sept. 30, 2001  Sept. 30, 2000   Change 
   Group             EUR m.            EUR m.       in  %
Net sales          2.300          2.195        +4,8
Digital              333            364        -8,5
Sheetfed           1.573          1.351      +16,4
Web Systems          218            307      -29,0
Finishing            176            173       +1,7
Incoming orsers    2.539          3.073      -17,4
Digital              374            409       -8,6
Sheetfed           1.600          2.024      -20,9
Web Systems          382            426      -10,3
Finishing            183            214      -14,5
Order backlog      1.847          2.263      -18,4
Digital              152            149       +2,0
Sheetfed           1.167          1.653      -29,4
Web Systems          437            356      +22,8
Finishing             91            105      -13,3
Operating profit     110            153      -28,1
Digital              -69            -46      -50,0
Sheetfed             263            212      +24,1
Web Systems          -91            -24     -279,2
Finishing              7             11      -36,4
Net profit            62             82      -24,4
Return on sales in %   2,7            3,7
Sales by
   regions   Sept. 30, 2001  Sept. 30, 2000  Change  Share 
                                                     01/02
                 EUR m.          EUR m.      in %    in %
Central 
   Europe        869        800        +8,6       37,8
Eastern 
   Europe        132        118       +11,9        5,7
NAFTA         586        723       -18,9       25,5
Central+South 
   America        90        60        +50,0        3,9
Asia/Pacific  559       432        +29,4       24,3
Middle East/
   Africa         64        62         +3,2        2,8
Group        2.300     2.195         +4,8      100,0
Important note: 
   This press release contains statements about the future that are
based on assumptions and estimates made 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.
Photographs are available on the Internet at
www.journalist.heidelberg.com.
ots Original Text Service: Heidelberger Druckmaschinen AG
Internet: http://www.presseportal.de
Further information:
Heidelberger Druckmaschinen AG
Corporate Communications
Thomas Fichtl
Tel.: +49-6221-92 47 47 
E-mail:  thomas.fichtl@de.heidelberg.com

Original content of: Heidelberger Druckmaschinen AG, transmitted by news aktuell

More stories: Heidelberger Druckmaschinen AG
More stories: Heidelberger Druckmaschinen AG