Financial Year 2011/2012: Heidelberg Publishes Nine-Month Figures

In the third quarter of financial year 2011/2012 (October 1 to December 31, 2011), Heidelberger Druckmaschinen AG (Heidelberg) achieved a slightly positive result of operating activities with stable sales. The "FOCUS 2012" efficiency program was adopted in January 2012. The aim is to ensure that the target operating result excluding special items of around EUR 150 million is achieved in financial year 2013/2014.

Incoming orders in the first nine months (April 1 to December 31, 2011) amounted to EUR 1.975 billion, 7 percent down on the previous year's figure for the same period (EUR 2.120 billion). The Heidelberg Group's order backlog at the end of the third quarter amounted to EUR 728 million, which was on a par with the previous quarter (EUR 731 million).

Sales in the first nine months amounted to EUR 1.811 billion, 4 percent down on the previous year's figure for the same period (EUR 1.883 billion). After adjustment for exchange rate effects, sales were almost on a par with the previous year's level at EUR 1.841 billion.

"The economic uncertainty and the resultant reluctance to invest have impacted on the business operations of Heidelberg as expected," said Heidelberg CEO Bernhard Schreier. "Nevertheless, consistent cost management has ensured that the operating result in the third quarter is positive and on the whole in line with the scaled-down expectations."

Despite lower sales revenues, the result of operating activities excluding special items after nine months has improved to EUR -19 million (previous year: EUR -26 million). The special items amounting to EUR 10 million mainly consisted of expenditure relating to further restructuring.

Thanks to successful refinancing and lower financing costs, the financial result improved significantly on the previous year from EUR -103 million to EUR -62 million. The result before taxes for the first nine months improved from EUR -103 million in the same period the previous year to EUR -91 million. After three quarters, the shortfall for the current financial year is EUR -79 million (previous year: EUR -78 million).

The free cash flow for the first nine months was negative at EUR -23 million. This is primarily a result of the annual loss and investments in the expansion of our plant in China. The company's net financial debt fell again slightly after three quarters to the comparatively low figure of EUR 273 million. The equity ratio remained stable at almost 30 percent during the period under review.

"Heidelberg is on a stable financial footing thanks to successful refinancing and systematic asset management," said Heidelberg CFO Dirk Kaliebe. "The success of our financial measures is reflected in the consistently stable equity ratio and significantly reduced net financial debt."

As of December 31, 2011, Heidelberg had a workforce of 15,666 worldwide (previous year: 15,828).

Business results in the divisions and regions

The incoming orders of the Heidelberg Services division improved in the third quarter to EUR 277 million, up on the previous quarters. Compared with the equivalent nine months of the previous year, incoming orders were 5 percent below the previous year's good figure at EUR 792 million. In the same period, the division's sales dropped by 5 percent to EUR 769 million. The main reason for this development was the drop in sales in the remarketed equipment business. In the Heidelberg Equipment division, incoming orders for the first three quarters totaled EUR 1.172 billion. This was 8 percent down on the previous year, which was boosted by the IPEX and ExpoPrint trade shows. Nine-month sales of EUR 1.031 billion were equivalent to the same period the previous year after adjusting for exchange rate effects.