Heidelberg hit by slow sales

Global financial crisis continues to take its toll on Heidelberg with an 18 per cent drop in sales for 2008.

Despite high demand at the drupa trade show in spring 2008, preliminary incoming orders in the past financial year amounted to 2.906 billion Euro, 20 per cent down on last year's figure (3.649 billion Euro). Preliminary sales by the Heidelberg Group for the year as a whole totaled 2.999 billion Euro, 18 per cent down on the previous year's figure of 3.670 billion Euro.
 
According to Bernhard Schreier, Heidelberg CEO, these conditions prompted job cuts to manage an adjustment. "We responded quickly to the difficult situation by introducing tougher cost-cutting measures. We are already seeing first signs of success,” he said.

“As the market leader, we are able to maintain – and even extend – our considerable competitive advantages in this time of crisis, which promises good prospects for growth when the economic climate brightens.”

Locally, Andy Vels Jensen (pictured), managing director Heidelberg Australia and New Zealand believes that the market is not travelling any different from any other major areas.

“The overall market for new equipment is down dramatically, despite the investment incentive, and nobody seems willing to take positions on used machinery,” he said.

“HAN sales have dropped off some 25 per cent; however the good news for us is that we have increased our ‘non equipment’ income over the past eight years to the point where almost 60 per cent of our non-cost of sales expenses are paid for before we sell the first machine.”

Overall, Vels Jensen is optimistic of Heidelberg’s future in the local market.
“I can't say I greeted the recession with open arms, but something good always comes out organisations in having to deal with bad times. HAN is in the best shape of our 86 years in ANZ,” he said.

“Interest rates are the lowest ever, the Australian dollar has gained some new strength, there is a 30 per cent tax incentive for investments and suppliers are ready to make deals, while there is a shimmer of light on the stock market and business confidence to indicate we have reached the bottom, so I can't really think of a better time to get your organisation ready for some serious print business.”

Heidelberg will publish its final figures for the 2008/2009 financial year on June 9, 2009.