Heidelberg has experienced a slide in global first-quarter revenue but remains confident of finishing the year in profit.
The German manufacturer's interim results showed a 3% year-on-year decline in sales to €504 million ($736 million) for the three months to 30 June 2013.
Heidelberg posted a €2 million loss for its underlying earnings before interest, taxes, depreciation and amortisation compared to a €47 million loss at the same point last year.
The company said the improvement was due to cost savings and higher profit contributions on new equipment, as well as the impact of trade show expenditure on last year’s results.
Chief executive Gerold Linzbach said: "The substantial increase in our operating result makes us confident that we will record a profit for the year as a whole.
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"In order to achieve this, we are systematically pressing ahead with our strategic reorganisation so as to further improve our margins for new machine sales in the future and adapt our cost structures to the market situation on an ongoing basis."
Heidelberg's net debt remained stable at €258 million, despite further restructuring payments of around €31 million for Focus 2012.
Incoming orders totalled €643 million; the previous year's figure of €890 million was bloated by Drupa. According to the interim report, the positive impact of China Print in May was offset by a reluctance to invest in South America, particularly Brazil, as well as the Europe, Middle East and Africa region.
The business continued to reduce its workforce across the quarter, cutting 546 positions to 13,669. Heidelberg shed 1,200 positions in 2012-13 and is aiming for a headcount of fewer than 13,500 by mid-2014.
The company said the results were in line with expectations and that the outlook for the year remained unchanged.
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This article originally appeared at printweek.com
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