Heidelberg has recorded a $138.4m loss in the first three quarters of the year, but remains optimistic saying it will achieve an EBITDA margin of eight per cent target in 2015-16, despite losing half a million dollars a day. The company blames a significant decline in China sales – in common with the other press manufacturers – and huge restructuring costs for its loss in just nine months. However the one-time giant is hoping to make strong sales in the final quarter of this year, which it predicts will diminish the annual fall in sales to five per cent, compared to the 7.8 per cent fall in the first nine months of the previous year. Heidelberg Australia managing director Richard Timson was positive about the outlook of the company saying he was not shocked to see the results.
Heidelberg Linoprint CV
He says, “While compared to last year the sales will be down, which is in line with expectations in a consolidating print market, and while consumables and servicing are under pressure, Heidelberg ANZ has sold more presses compared to same time last year.” Timson says, “Several orders are still being shipped and processed”, but exactly how many presses were sold was not revealed. He says, “We are hanging in there here, and have sold more equipment than expected, especially a lot more A2 presses compared to A1, which means more revenue.” He says in general people are tightening their ‘belts and buying less consumables’ as well as servicing less often, which increases the pressure on the market. Incoming orders for the global company rose in Q3, but were down overall for the nine months, from $2.7bn to $2.6bn. The $138.4m loss is more than double the $58.3m loss of the first nine months of last year, but $105m of that was in now-completed restructuring costs. Despite the loss Heidelberg did manage to pay down some debt, taking it from $397m to $365m. Staff numbers were cut by 600 from 12,851 plus 621 trainees to 12,280 plus 534 trainees. The company has also confirmed its plans to continue reducing low-margin business, such as its withdrawal from most of the finishing market, and will stop production of the GTO.
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.
Sign up to the Sprinter newsletter