Heidelberg’s push into new growth areas including services and digital helped boost the company’s sales in the first half of the financial year to $A1.75 billion (€1.16bn).
Heidelberg’s push into new growth areas including services and digital helped boost the company’s sales in the first half of the financial year to $A1.75 billion (€1.16bn).
Earnings before tax increased to $118 million, up from $79 million for the same period last year. The group posted a first half loss of $21 million, compared with a $63 million loss previously.
“We are systematically implementing our growth strategy and the new business models and a dynamic portfolio have led to a significant increase in sales,” said Dirk Kaliebe, CFO and Deputy CEO, who is also interim chief executive while Gerold Linzbach is on sick leave. “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," he said.
The takeover of the Printing Systems Group (PSG) in March increased service and consumables sales and further acquisitions are on the agenda, according to a company press release.
Half of the planned additional sales of some €100 million from the takeover have been generated after six months. Heidelberg is planning further acquisitions in this growth segment in the future and is expecting services and consumables to account for around 50 percent of Group sales in the medium term.
The offset giant said it would continue to target the growing digital printing market.
The greater focus of the research and development budget on digital printing is also becoming increasingly apparent. One example is the successful sales launch of the company’s new 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.
Heidelberg announced it would continue ‘planned efficiency measures’ in its traditional sheetfed business, aimed at increasing flexibility and boosting profitability. The recent relocation of its headquarters and the Print Media Center Commercial from Heidelberg to Wiesloch-Walldorf would further reduce operating costs.
The relocation of company headquarters and the Print Media Center Commercial from Heidelberg to Wiesloch-Walldorf marks the completion of a key structural measure. This will speed up processes in the future and further reduce annual operating costs for the sites. Together with the Print Media Center Packaging, Wiesloch-Walldorf now boasts the industry’s largest demonstration center for commercial and packaging printing anywhere in the world. The sale of the vacant administrative premises in Heidelberg has been contractually agreed and is expected to be recognized in profit or loss in the course of the financial year.
Heidelberg now employs 11,753 staff worldwide. That is 640 employees less than a year ago, mainly because of restructuring in the sheetfed and post-press units.