Heidelberg orders up 20 per cent

The world’s biggest press manufacturer has made a successful start to the new financial year as its new strategic reorientation kicks in, with sales and orders both rising strongly.

For the first quarter (April to June) the company has improved it order situation, while favourable exchange rate movements have also boosted the books.

Incoming orders are up by a fifth to about €700m from €588m the previous year, thanks to a healthy order backlog at the beginning of the quarter, higher service-related sales, and exchange rate movements.

[Related: More Heidelberg news]

Sales also increased, up by a quarter to about €560m compared to the previous year of €435m, while operating EBITDA margin has increased to about five per cent from 1.4 per cent the previous year, and EBIT is up to €13m.

Under its new strategy Heidelberg is aiming to have service and consumables make up more than 50 per cent of its business, up from their current 40 per cent.

The company says its three years of cost cutting are over and it is now focusing on growth. It is also looking at markets outside traditional print, such as industrial decoration. It will also develop its partnerships further, including that with Fujifilm.

Income from the PSG takeover has compensated for special items; and a higher pension discount rate increased its equity ratio to around 15 per cent. The company says it is well on its way to achieving financial year targets.

The operating result was much better than in the previous year. EBITDA were €46m compared to the previous year’s €6m and its EBIT rose well into the black at €28m from the previous year’s negative €11m.

Income from the takeover of the PSG Group totalling about €19m has had a positive impact on both these figures.

This income compensated for expenditure of around €15m resulting from partial retirement agreements concluded in the previous year, which had to be included under special items. EBIT including special items improved on balance from minus €11m to €13m.

Equity at the end of the quarter increased to about €330m, up from the end of financial year on March 31, 2015 at €183m. This corresponds to an equity ratio of around 15 per cent, almost double that at the end of the year.

Deputy chief executive and chief financial officer Dirk Kaliebe says: “As we start the new financial year, Heidelberg is well on the way to achieving its targets for the year.”

Kaliebe is now acting chief executive at Heidelberg in light of incumbent Dr Gerold Linzbach’s undisclosed illness, which has kept him away for his desk since the beginning of June. Heidelberg says Dr Linzbach will return to his duties when he is 100 per cent recovered.

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