Heidelberg has ended its latest quarter with net results for its revenue from April to December 2015 taking it on track to be back into profit for the full year.
The net result after taxes for the nine month period was recorded as €-7m, a significant change from the equivalent period last year, which was €-95m. The company attributes the negative results to ‘restructuring costs and the PSG acquisition’.
Results for the third quarter ending December 31 saw a profit of €7m, representing a €60m turnaround compared with the same period last year, which recorded a €53m loss.
Group sales for the press giant increased by 16 per cent in the nine month period to €1.8bn, up from the previous year’s €1.55bn.
Incoming orders in the reporting period were also significantly higher than the previous period, boosting to €1.9m from €1.78m.
According to Heidelberg, the successful integration of recently acquired PSG Group also made a considerable contribution to the rise in sales. The group also says sales in the Asia Pacific region were ‘encouraging’.
[Related: Heidelberg sales rising]
The German company says efforts for future growth will include further developing its growing digital business and continuing to expand service business, as the services segment accounted for almost half of group sales in the past nine months.
Gerold Linzbach, CEO at Heidelberg says, “We have made good progress with our goal of ensuring long-term profitability at Heidelberg. Our new portfolio is more closely geared toward stable market segments, is more profitable, and creates the conditions for further growth.”
Heidelberg says it is aiming for sales growth of two to four per cent in the current financial year 2015/2016. Chief financial officer Dirk Kaliebe says it forecasts projected growth and hopes to continue steady increase in net profit.
“We have created the financial scope to finance acquisitions and invest in growth and innovation. In the future, we will keep working on further optimizing our financing framework and ensuring the continued strategic development of Heidelberg,” says Kaliebe.
In statement Heidelberg says its equipment segment is expected to contribute between four and six per cent to its anticipated results, and the services segment from nine to 11 percent.
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