Click here to close now.


News Feed Item

Restructuring of Heidelberg Group Continues - Further Improvement in Result in First Quarter of Financial Year 2014/2015

HEIDELBERG, Germany, August 13, 2014 /PRNewswire/ --

  • Adjustments to postpress portfolio  
  • Positive operating result (EBITDA) of € 6 million in first quarter despite predicted decrease in sales  
  • Outlook: EBITDA margin of at least 8 percent in financial year 2015/2016 getting closer  

As already announced, Heidelberger Druckmaschinen AG (Heidelberg) is systematically pressing ahead with restructuring the Group. The strategic focus announced at the beginning of the financial year was to streamline the postpress portfolio. This is expected to yield an annual improvement in the result of some € 30 million, most of this from financial year 2015/2016 onward. In operational terms, the first quarter of financial year 2014/2015 (April 1 to June 30, 2014) went as expected. The operating result (EBITDA) was up on the previous year and moved back into positive figures, even though sales in the reporting period fell as anticipated. Thanks to a higher order backlog at the end of the first quarter, the company is expecting an increase in sales in the following quarters.

"Measures aimed at boosting efficiency have enabled us to achieve an operating profit even in light of the persistently volatile market environment. Realigning our portfolio will help us to further improve our profitability," said Heidelberg CEO Gerold Linzbach.

While being around 14 percent down on the figure for the same quarter of the previous year (€ 504 million), Group sales in the first quarter were in line with expectations at € 435 million. This development can be explained by the strong year-end rally in the preceding quarter, renewed negative exchange rate effects, and a slackening of business in the Asia/Pacific region. In the other regions, sales matched the previous year's level.

Group restructuring leads to continuing improvements in financial result  

Both EBITDA and EBIT in the first quarter were once again up on the same quarter of the previous year. EBITDA excluding special items was positive at € 6 million, following a negative figure in the previous year (€ -2 million). At € -11 million, the result of operating activities (EBIT) excluding special items was also better than the previous year's figure of € -20 million. The operating result has therefore been continuously improving for just under two years now. There were no special items in the quarter under review. Due to lower financial income and the refinancing in the previous year, the financial result for the first quarter was € -17 million (previous year: € -12 million). Nevertheless, income before taxes improved from € -33 million to around € -28 million. Overall, the net result for the first quarter was in line with expectations at € -34 million (previous year: € -38 million).

Primarily due to the net loss for the quarter and payments totaling € 12 million for the Focus efficiency program, the free cash flow after the first quarter was negative at € -66 million (previous year: € 0 million). Accordingly, the net debt rose to € 297 million (previous year: € 258 million) but remains at a low level. This enabled us to maintain the leverage (ratio of net debt to EBITDA excluding special items for the last four quarters) at our target value of 2.

"In addition to continuously improving the operating result over the past two years, we have also succeeded in getting the debt back down to a low level," said Heidelberg CFO Dirk Kaliebe. "At the same time, we placed our financing on a stable footing, which lays the financial foundation for restructuring the company," he added.

Portfolio repositioning progresses 

As already announced, the Group is systematically removing low-margin products from its portfolio. At the beginning of August, for example, the company announced the strategic realignment of its Postpress Commercial and Postpress Packaging business areas. This will involve discontinuing production capacities, developing and manufacturing products and solutions through OEM partners in future, and/or outsourcing activities to partners. A total of around 650 employees worldwide will be affected. The Group expects these measures to yield an annual improvement in the result of some € 30 million, most of this from financial year 2015/2016 onward.

Outlook: EBITDA margin of at least 8 percent in financial year 2015/2016 getting closer 

The actual development of sales and the result in financial year 2014/2015 will depend to a great extent on implementation of the portfolio optimization measures initiated.

Heidelberg currently expects that sales in financial year 2014/2015 will match those in the previous financial year. As in the previous year, sales are once again likely to be higher in the second half of the financial year than in the first.

Having succeeded, as forecast, in achieving a positive annual result in financial year 2013/2014, the declared goal for financial year 2014/2015 is to further improve the company's operating profitability so as to get closer to the medium-term target of an operating margin in terms of EBITDA of at least 8 percent and improve the net result, despite the higher interest payments for financial liabilities. Provided the initiatives to improve margins and optimize the portfolio are successfully implemented in the current financial year, the company expects to be able to achieve an EBITDA margin of at least 8 percent of sales by financial year 2015/2016.

As at June 30, 2014, the Heidelberg Group had a global workforce of 12,454, excluding 493 trainees (previous year: 13,162, excluding 507 trainees).  

Images and further company information are available in the press portal of Heidelberger Druckmaschinen AG at

The Q1 interim financial report 2014/2015 can be accessed at

Other dates: 

The figures for the second quarter of financial year 2014/2015 are due to be published on November 12, 2014.

Important note: 

This press release contains forward-looking statements based on assumptions and estimations by the Management Board of Heidelberger Druckmaschinen Aktiengesellschaft. Even though the Management Board is of the opinion that those assumptions and estimations are realistic, the actual future development and results may deviate substantially from these forward-looking statements due to various factors, such as changes in the macro-economic situation, in the exchange rates, in the interest rates and in the print media industry. Heidelberger Druckmaschinen Aktiengesellschaft gives no warranty and does not assume liability for any damages in case the future development and the projected results do not correspond with the forward-looking statements contained in this press release.

For further information, please contact:  

Heidelberger Druckmaschinen AG

Corporate Public Relations
Thomas Fichtl
Phone +49(0)6221-92-5900
Fax: +49(0)6221-92-5088
E-mail: [email protected]

Investor Relations
Robin Karpp
Phone: +49(0)6221-92-6020
Fax: +49(0)6221-92-5189
E-mail: [email protected]

SOURCE Heidelberger Druckmaschinen AG

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The enterprise is being consumerized, and the consumer is being enterprised. Moore's Law does not matter anymore, the future belongs to business virtualization powered by invisible service architecture, powered by hyperscale and hyperconvergence, and facilitated by vertical streaming and horizontal scaling and consolidation. Both buyers and sellers want instant results, and from paperwork to paperless to mindless is the ultimate goal for any seamless transaction. The sweetest sweet spot in innov...
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and Containers together help companies to achieve their business goals faster and more effectively.
Docker is hot. However, as Docker container use spreads into more mature production pipelines, there can be issues about control of Docker images to ensure they are production-ready. Is a promotion-based model appropriate to control and track the flow of Docker images from development to production? In his session at DevOps Summit, Fred Simon, Co-founder and Chief Architect of JFrog, will demonstrate how to implement a promotion model for Docker images using a binary repository, and then show h...
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
Today’s connected world is moving from devices towards things, what this means is that by using increasingly low cost sensors embedded in devices we can create many new use cases. These span across use cases in cities, vehicles, home, offices, factories, retail environments, worksites, health, logistics, and health. These use cases rely on ubiquitous connectivity and generate massive amounts of data at scale. These technologies enable new business opportunities, ways to optimize and automate, al...
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and containers together help companies achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, will review the current landscape of...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
The IoT is upon us, but today’s databases, built on 30-year-old math, require multiple platforms to create a single solution. Data demands of the IoT require Big Data systems that can handle ingest, transactions and analytics concurrently adapting to varied situations as they occur, with speed at scale. In his session at @ThingsExpo, Chad Jones, chief strategy officer at Deep Information Sciences, will look differently at IoT data so enterprises can fully leverage their IoT potential. He’ll sha...
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi's VP Business Development and Engineering, will explore the IoT cloud-based platform technologies driv...
DevOps has often been described in terms of CAMS: Culture, Automation, Measuring, Sharing. While we’ve seen a lot of focus on the “A” and even on the “M”, there are very few examples of why the “C" is equally important in the DevOps equation. In her session at @DevOps Summit, Lori MacVittie, of F5 Networks, will explore HTTP/1 and HTTP/2 along with Microservices to illustrate why a collaborative culture between Dev, Ops, and the Network is critical to ensuring success.
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. Migration to cloud shifts computing resources from your data center, which can yield significant advantages provided that the cloud vendor an offer enterprise-grade quality for your application.
There will be 20 billion IoT devices connected to the Internet soon. What if we could control these devices with our voice, mind, or gestures? What if we could teach these devices how to talk to each other? What if these devices could learn how to interact with us (and each other) to make our lives better? What if Jarvis was real? How can I gain these super powers? In his session at 17th Cloud Expo, Chris Matthieu, co-founder and CTO of Octoblu, will show you!
As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ability. Many are unable to effectively engage and inspire, creating forward momentum in the direction of desired change. Renowned for its approach to leadership and emphasis on their people, organizations increasingly look to our military for insight into these challenges.
Overgrown applications have given way to modular applications, driven by the need to break larger problems into smaller problems. Similarly large monolithic development processes have been forced to be broken into smaller agile development cycles. Looking at trends in software development, microservices architectures meet the same demands. Additional benefits of microservices architectures are compartmentalization and a limited impact of service failure versus a complete software malfunction....