The report also states that there is no market improvement
on the horizon for the current financial year. Heidelberg will be publishing its sales
forecast for the current financial year at the beginning of August with its
figures for the first quarter.
However, the company admits that it is already predictable
that the sales for the first quarter of 2008-09 will be down on the previous
year's figure, and that the operating result (EBIT) will be negative.
The company statement says, "Like the first quarter 2008-09,
the entire fiscal year will be affected by non-recurring expenditures for
drupa, the start-up of series production for a number of new products and the
strong Euro. For these reasons, the operating result for the entire fiscal year
will be down on previous fiscal year's figure."
Incoming orders also fell last year, they amounted to Euro3.649bn,
around five per cent down on the previous year's figure, as fears of recession
and further effects of the credit crunch made US customers less ready to
invest. Business was also less than satisfactory in the United Kingdom and Japan.
Bernhard Schreier, Heidelberg CEO says, "After drupa
but before the annual general meeting on July 18, we will announce appropriate
measures to secure our leading market position and financial performance in the
long term,"
Schreier says, "Our aim is to improve our cost
structures and lessen the effect of exchange rates in the medium term by
internationalising purchasing and production. We will also be stepping up our
service and consumables operations to further reduce our dependency on economic
cycles."
Interestingly, in March this year Heidelberg had a workforce of 19,596
worldwide, up from 19,171 last year, with most of the new appointments in the
field of production and global sales.
The scheduled publication date for the company's 2007-08
Annual Report is June 1, which will coincide with drupa.
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