Heidelberg woes worsen with AU$37.4m operating loss

The press manufacturer has revealed that sales will be below expectations and around 10% down on the previous year – between €800m (AU$1.5bn) and €820m (AU$1.53bn) – when it announces its second-quarter results on 6 November.

Heidelberg also said that, “due to declining sales and continuing negative effects”, it expects to make an operating loss of €20m, excluding restructuring costs of a further €20m and an early-retirement scheme that could stretch to another €30m (AU$56.3m).

Heidelberg’s poor results come a week after KBA issued a profit warning, which it blamed on a “sizeable volume” of Drupa orders failing to materialise.

Similarly, Heidelberg has revealed that “based on orders generated at Drupa” it had expected a stronger increase in sales in comparison to the first quarter of the current financial year.

The company said that it recognised the “significant reluctance to invest in all regions because of the actual economic situation”.

Heidelberg expects free cashflow for the second quarter to stand at between minus €70m (AU$131.3m) and minus €90m (AU$168.7m), again due to the lower sales volume.

Meanwhile, it revealed that its restructuring program, announced in the first quarter, was on track, although it will now be expanded due to the recent economic developments.

Read the original article at www.printweek.com.

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