Heidelberg has also issued a profits warning, telling the market it is experiencing a significant downturn in sales in the year April 1 2008 to March 31 2009.. Heidelberg is expecting a ‘significant annual deficit in the current financial year’. All press manufacturers are experiencing difficult trading conditions, and most have seen a number of their drupa orders disappear

The majority of the jobs will go from Germany, although nowhere will be immune from the cuts, however the Australian business is not expecting to have to shed more staff, as it has already taken reorganisation measures three months ago. Andy Vels Jensen, managing director of Heidelberg ANZ says, “Our business was one of the first to make changes, and what we have already done is sufficient.” Vels Jensen has told the Heidelberg Board in Germany that any further changes to the ANZ staffing will require significant business reorganisation.

Those changes already completed have included some reorganisation and not filling vacant positions. Heidelberg’s head count in ANZ is currently 245, down from 265 a couple of years ago. Vels Jensen is keen to point out that his 170 service staff remain unaffected. Heidelberg. ANZ is also realising significant savings through its office relocation programme, with new moves completed in Melbourne, Brisbane and Perth. The company is also aiming to change its Sydney premises, but is currently stuck in a ten year lease on the current building.

Vels Jensen says that while Australian press sales are down on last year’s record numbers, by about 17 per cent, market share is up.

Heidelberg had previously announced 500 jobs would go worldwide, with a saving of Euro75m expected, however the new measures go much further, with the aim of more than doubling the savings. Heidelberg announced a first quarter loss of Euro50m this year (April-July) and had said it would provide a full year forecast at the beginning of November, however the company has that due to market uncertainty it will not be providing the forecast. Heidelberg says the financial result is also expected to be down due to the current financial crisis and the movements in interest rates.

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