Heidelberg bounces back with first-half results

The net profit recorded during the first six months of the 2005/2006 financial year was $52.88 million, a large boost on last year's loss of $94.5 million. Heidelberg succeeded in locking down sales of $2.45 billion over the period, a figure up 12 per cent on the previous year's result.

Bernhard Schreier, CEO of Heidelberg, claims the results indicate the continued recovery of the print media industry during the first six months of the financial year. “Sales and incoming orders at Heidelberg were up on the previous year's figures in virtually every region, and we believe that the same will be true for the second half of the financial year,” he says.

Herbert Meyer, CFO of Heidelberg, claims the improvement demonstrates the company is on the right track to improving its profitability, and is making progress with its restructuring.

“The lower personnel expenses at the German sites resulting from the agreement to safeguard the company's future also had an effect for the first time,” Meyer says. Heidelberg now has a workforce of 18,774 worldwide, compared to the previous year's figure of 19,082.

The company anticipates a moderate growth in sales for the full year, expecting to better last year's operating results of $267.6 million and its net profit of $97.74 million. “Nonetheless, exchange rate movements and developments in raw material and energy prices still present a risk which could have a negative effect on results for the financial year as a whole,” says Meyer.

Sales in Heidelberg's offset printing division rose by 12 percent to $2.13 billion in the first six months, a slight rise on last year's result of $1.9 billion. In the company's finishing division, half-yearly sales amounted to $278.8 million, up on the $240.37 million from the previous year. The division also locked down its first ever profit of two million Euro in the second quarter.