The Heidelberg Group recorded sales of EUR3.661bn, down from EUR4.1bn last financial year, which was in line with expectations. After adjustments for exchange rate movements, sales were down six per cent. Incoming orders were around EUR3.8bn, down from EUR4bn.

Bernhard Schreier, Heidelberg CEO, finds reason to be optimistic about these sales results, despite their downward trend. He believes that Heidelberg has turned the corner.

“After three weak years, the print media industry is set for a perceptible revival. The improved economic conditions and commitment to our profitable sheetfed offset operations will clearly make their mark in the current fiscal year,” says Schreier.

The operating result was EUR20m, down substantially from EUR102m, but still managed to exceeded the break-even result that had been forecast. This was primarily the result of the implemented cost-cutting measures, which saved EUR240m. In the fourth quarter alone, the operating result improved considerably to EUR110m, up from EUR54m in the fourth quarter of the previous financial year.

The net result in the past fiscal year was a loss of EUR695m, compared to the loss of EUR138m. This includes non-recurring expenditures of EUR569m in restructuring costs and expenditures in connection with the discontinued operations in the Digital and Web Systems divisions.

Herbert Meyer, Heidelberg CFO, says, “By divesting unprofitable operations and reducing fixed costs over the long term, we were able to significantly reduce our break-even threshold. We have thus laid the groundwork for a return to our usual high profits in the medium term.”

In view of the negative result, the Management Board and Supervisory Board will propose at the AGM on July 21, 2004 that no dividend be paid for the year under review.

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