Welcome!

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 http://www.heidelberg.com.

The Q1 interim financial report 2014/2015 can be accessed at http://www.heidelberg.com.

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
Predictive analytics tools monitor, report, and troubleshoot in order to make proactive decisions about the health, performance, and utilization of storage. Most enterprises combine cloud and on-premise storage, resulting in blended environments of physical, virtual, cloud, and other platforms, which justifies more sophisticated storage analytics. In his session at 18th Cloud Expo, Peter McCallum, Vice President of Datacenter Solutions at FalconStor, will discuss using predictive analytics to ...
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, will discuss how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved effi...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
Father business cycles and digital consumers are forcing enterprises to respond faster to customer needs and competitive demands. Successful integration of DevOps and Agile development will be key for business success in today’s digital economy. In his session at DevOps Summit, Pradeep Prabhu, Co-Founder & CEO of Cloudmunch, covered the critical practices that enterprises should consider to seamlessly integrate Agile and DevOps processes, barriers to implementing this in the enterprise, and pr...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
Sensors and effectors of IoT are solving problems in new ways, but small businesses have been slow to join the quantified world. They’ll need information from IoT using applications as varied as the businesses themselves. In his session at @ThingsExpo, Roger Meike, Distinguished Engineer, Director of Technology Innovation at Intuit, showed how IoT manufacturers can use open standards, public APIs and custom apps to enable the Quantified Small Business. He used a Raspberry Pi to connect sensors...
The principles behind DevOps are not new - for decades people have been automating system administration and decreasing the time to deploy apps and perform other management tasks. However, only recently did we see the tools and the will necessary to share the benefits and power of automation with a wider circle of people. In his session at DevOps Summit, Bernard Sanders, Chief Technology Officer at CloudBolt Software, explored the latest tools including Puppet, Chef, Docker, and CMPs needed to...
Data-as-a-Service is the complete package for the transformation of raw data into meaningful data assets and the delivery of those data assets. In her session at 18th Cloud Expo, Lakshmi Randall, an industry expert, analyst and strategist, will address: What is DaaS (Data-as-a-Service)? Challenges addressed by DaaS Vendors that are enabling DaaS Architecture options for DaaS
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
DevOps is not just last year’s buzzword. Companies with DevOps practices are 2.5x more likely to exceed profitability, market share, and productivity goals. But how do you enable high performance? What can you do right now to start? Find out from DevOps experts including Gene Kim, co-author of "The Phoenix Project," and the Dynatrace Center of Excellence.
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Avere delivers a more modern architectural approach to storage that doesn’t require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbuilding of data centers ...
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...