Heidelberg’s strategic re-alignment is paying early dividends with the revenue, sales and orders at the press giant all rising, according to figures for the first six months of this year.
Sales in the first six months climbed to €1.16bn, up from €996m in the same period last year, although half of that rise came from favourable currency movements. Incoming orders in the six months improved by 14 per cent to €1.32bn from previous year €1.167bn.
The company is aiming to have at least 50 per cent of its income from consumables and service in its new business portfolio, and is also looking to its digital project as a major source of revenue. It will remain as the world’s biggest offset press manufacturer.
Heidelberg is by far the market leader in Australia for offset presses, with a huge installed base, however in recent years press sales have been hard to come by for all press manufacturers, as the number of printers has slumped, and as the new breed of presses are able to do the work of two or three of the older machines.
Sales were up in all regions including Australasia, except Eastern Europe, where they remained stable. Incoming orders in the period under review improved to €1.32bn compared to the previous year’s €1.167bn.
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EBITDA excluding special items totaled €79m, up by almost 30 per cent from the previous year at €53m and EBIT excluding special items €43m, more than double the previous year of €19m.
Heidelberg says the results are vindication of its strategic re-orientation, and that its full year results are on target. It says its growth areas are service and consumables are expanding strongly, while the processes and structure of its sheetfed manufacturing business has become leaner.
The company says the greater focus of the research and development budget on digital printing – which now takes at least a third of its entire r+d budget – is also becoming increasingly apparent.
It points to the successful sales launch of the company’s new Gallus branded digital label press for the packaging market. Heidelberg has also succeeded in winning over a German start-up company from the food industry for its latest development in the field of 4D printing.
Unveiling the first industrial sheetfed digital press at the drupa trade show next year will mark the next milestone in the digital strategy. The press will be a single sided B1 inkjet printer with Fujifilm inkjet technology, aimed at the folding carton market.
Dirk Kaliebe, CFO and deputy CEO of the company says, “We are systematically implementing our growth strategy. New business models and a dynamic portfolio have led to a significant increase in sales. “The reorientation of Heidelberg has also made us more flexible, which means we are better able to respond to market fluctuations and can further improve profitability.”
Heidelberg’s CEO Dr Gerold Linzbach, the industry outsider who came into the company following drupa 2102 declaring there were no sacred cows, and who has driven the change in strategy, is still sidelined by illness.
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