Despite the bleak assessment, Bernhard Schreier, CEO of Heidelberg says the company responded quickly to the difficult economic situation with the overall cost-cutting measures saving around €84m in the 2008-09 financial year.
“The 2008-09 financial year was one of the most difficult in the company’s history. The positive start to the year with the drupa 2008 trade show was burdened in the following months with the global recession and the collapse in demand worldwide. Nonetheless, we succeeded in easing the effects of the crisis by implementing a raft of cost-cutting measures at an early stage.”
He continues, “We are doing everything we can to make Heidelberg even less dependent on economic developments. As a result, Heidelberg is well placed to return to profitable growth and win further market share when the economic climate brightens.”
In the 2008-09 financial year, Heidelberg sales fell by 18 per cent to €2.999bn and incoming orders were down 20 per cent on the previous year at €2.546bn.
Heidelberg says it does not expect the economic situation to improve significantly in financial year 2009-10 and does not anticipate print shop investments in some industrial countries to pick up in the months ahead.
Incoming orders are also predicted to remain at the low level recorded for the last two quarters. In view of this assessment and the low order backlog, Heidelberg forecasts a further drop in sales for the current financial year.
However Schreier says Heidelberg still plays a key role in the development of the press market. Adding that Overall, the company is well placed to once again enjoy profitable growth once the economy picks up.
He says, “We will emerge from this crisis as we have done before and start earning more money again. We will also see our share price increase and once again be in a position to pay a dividend.
“I firmly believe that we are on the right track to safeguard the company’s long-term future as a successful company on the press market, and I would ask for your support to ensure we achieve this. Heidelberg most definitely has a future.”
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