The drop in orders came despite high demand at drupa last year. The company has also seen an 18 per cent drop in preliminary sales to €2.9bn compared with €3.6bn the year before. Accordingly, Heidelberg posted a preliminary operating result based on EBIT, including restructuring costs, of minus €228m compared with €268m the previous year.

Excluding the restructuring costs, EBIT amounts to minus €49m. As expected, the preliminary annual result is also negative at minus €249m compared with €142m the year before. Despite the gloom, Bernhard Schreier, CEO of Heidelberg says the company recorded a positive free cash flow in the fourth quarter and has significantly reduced its inventories in the last few months.

Schreier says, “We responded quickly to the difficult situation by introducing tougher cost-cutting measures. As the market leader, we are able to maintain – and even extend – our considerable competitive advantages in this time of crisis, which promises good prospects for growth when the economic climate brightens.”

The company adds that almost all €179m invested in the cost-cutting program were incurred during the financial year just closed. Heidelberg expects to realise savings of between €350m and €380m in the financial year 2009-10.

Since the start of the financial year 2008-9, the company has reduced its staffing levels by around 1,400, including temporary workers. On March 31, 2009, the Heidelberg Group had a workforce of 18,926, including staff incorporated from new consolidations.

Heidelberg will publish its final figures for the 2008-9 financial year in June. Heidelberg’s share price has fallen two thirds in the past 12 months from €18 to €6.

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