Heidelberg Announces Preliminary Figures for 2007/2008
May 2008
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Market conditions worsened considerably for Heidelberger Druckmaschinen AG (Heidelberg) in financial year 2007/2008 (April 1, 2007 to March 31, 2008), with sales, operating result and net profit all down on the previous year’s levels. “Poorer economic prospects have taken their toll over the past financial year, in particular during the second six months,” stated Heidelberg CEO Bernhard Schreier. “This has led to a reluctance to invest in a number of regions,” he added.
There is no market improvement on the horizon for the current financial year 2008/2009. With drupa - the hugely important trade show running from May 29 to June 11, 2008 - still to come, it is difficult to predict how sales for financial year 2008/2009 will develop. Consequently, 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, it is already predictable that the sales for the first quarter of financial year 2008/2009 will be down on the previous year’s figure, and that the operating result (EBIT) will be negative. Like the first quarter 2008/2009, 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 2008/2009 will be down on previous fiscal year’s figure.
“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,” stated Schreier. “Our aim is to improve our cost structures and lessen the effect of exchange rates in the medium term by internationalizing purchasing and production. We will also be stepping up our service and consumables operations to further reduce our dependency on economic cycles,” he added.
Preliminary sales by the Heidelberg Group for the year as a whole totaled 3.670 billion Euro, 3.5 percent down on the previous year’s figure (previous year: 3.803 billion Euro). Business slowed in the fourth quarter in particular due to the effects on the world economy of the financial crisis in the U.S. and customers’ reluctance to make investments in the run-up to the all-important drupa trade show.
Preliminary incoming orders in the financial year just closed amounted to 3.649 billion Euro, around five percent down on the previous year’s figure (previous year: 3.853 billion Euro). Whereas the high volume of orders achieved in the previous year was exceeded in Germany, fears of a recession and further effects of the credit crunch made U.S. customers less ready to invest. Business was also less than satisfactory in the United Kingdom and Japan. On a more positive note, orders were boosted by the recovery in the Chinese market.
There is no market improvement on the horizon for the current financial year 2008/2009. With drupa - the hugely important trade show running from May 29 to June 11, 2008 - still to come, it is difficult to predict how sales for financial year 2008/2009 will develop. Consequently, 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, it is already predictable that the sales for the first quarter of financial year 2008/2009 will be down on the previous year’s figure, and that the operating result (EBIT) will be negative. Like the first quarter 2008/2009, 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 2008/2009 will be down on previous fiscal year’s figure.
“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,” stated Schreier. “Our aim is to improve our cost structures and lessen the effect of exchange rates in the medium term by internationalizing purchasing and production. We will also be stepping up our service and consumables operations to further reduce our dependency on economic cycles,” he added.
Preliminary sales by the Heidelberg Group for the year as a whole totaled 3.670 billion Euro, 3.5 percent down on the previous year’s figure (previous year: 3.803 billion Euro). Business slowed in the fourth quarter in particular due to the effects on the world economy of the financial crisis in the U.S. and customers’ reluctance to make investments in the run-up to the all-important drupa trade show.
Preliminary incoming orders in the financial year just closed amounted to 3.649 billion Euro, around five percent down on the previous year’s figure (previous year: 3.853 billion Euro). Whereas the high volume of orders achieved in the previous year was exceeded in Germany, fears of a recession and further effects of the credit crunch made U.S. customers less ready to invest. Business was also less than satisfactory in the United Kingdom and Japan. On a more positive note, orders were boosted by the recovery in the Chinese market.
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