The company reports preliminary sales achieved in the first quarter this financial year amounted to between Euro 640m and Euro 660m, down on last year’s Euro 742m.

In order to counter the negative trend Heidelberg has prepared a package of cost-cutting measures to be implemented with immediate effect. These measures are intended save around Euro 100m by 2010-11, with the aim of saving Euro 75m within the next 18 months.

The package’s main focal points are reducing R&D expenditures, restructuring postpress packaging activities, significantly increasing the proportion of purchases made outside the euro zone, strengthening international production sites and achieving a substantial reduction in structural costs.

The company says the cost-cutting measures will also impact on its workforce. Following meetings with employee representatives, around 500 jobs are to be axed worldwide by the end of 2010-11.

Heidelberg says based on preliminary calculations, this year’s operating result will be around minus Euro 35m. Also, due to the purchase of Hi-Tech Coatings the cost of drupa and lower sales, the free cash flow will be clearly below the previous year’s level at around minus Euro 200m.

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