Heidelberg orders hit highest level in 18 months

First quarter figures for 2010-11 financial year sees major growth in incoming orders for Heidelberg.

At EUR 786 million, incoming orders in the first quarter of financial year 2010/11 were 43 percent up on the previous year's figure (EUR 550 million) and 16 percent higher than the previous quarter (EUR 678 million). Contributory factors included positive exchange rate movements equivalent to around EUR 45 million, the high level of orders placed at the IPEX trade show in May 2010, and encouraging business developments – especially in China and Brazil.

As a result of the healthy incoming order situation, the Heidelberg Group's order backlog improved significantly to EUR 810 million at the end of the first quarter. This is the highest level for six quarters.

In the first three months of the current financial year, Heidelberg recorded sales of EUR 563 million, around EUR 36 million of which are linked to exchange rate movements. After adjusting for these movements, sales were 3 percent up on the previous year's figure of EUR 514 million.

"The market recovery continued in the first quarter, thus helping to maintain the upward trend in incoming orders and sales," said Heidelberg CEO Bernhard Schreier (pictured). "Together with the cost-cutting measures initiated, this has substantially reduced our operating loss."

For the current financial year 2010/11, Heidelberg is projecting a modest growth in sales. The result of operating activities will benefit from the increasing profit contributions as well as from the already achieved cost-reduction measures. Assuming stable economic developments, the company is still striving for a break-even operating result for the current financial year.

The company's forecast of economic developments reflected in its financial year planning takes into account the respective product mix prevalent in the single markets. Nevertheless, the enormous growth in financing costs will place a heavy burden on the financial result. During the current financial year, Heidelberg therefore anticipates a marked net loss again.