Accessibility Statement Skip Navigation
  • Resources
  • Blog
  • Journalists
  • +44 (0)20 7454 5110
  • Client Login
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All Public Company News
      • All Multimedia News
      • View All News Releases

      • Regulatory News

      • D/A/CH Regulatory News
      • UK Regulatory News
      • View All Regulatory News

  • Business & Money
      • Auto & Transportation

      • Aerospace & Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads & Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking & Road Transportation
      • View All Auto & Transportation

      • Business Technology

      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • View All Business Technology

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film & Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Financial Services & Investing

      • Accounting News & Issues
      • Acquisitions, Mergers & Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalisation
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • View All Financial Services & Investing

      • General Business

      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls & Research
      • Trade Show News
      • View All General Business

  • Science & Tech
      • Consumer Technology

      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • View All Consumer Technology

      • Energy & Natural Resources

      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil & Gas Discoveries
      • Utilities
      • Water Utilities
      • View All Energy & Natural Resources

      • Environ­ment

      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • Aerospace & Defence
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation & Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking & Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • Carriers & Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • Animals & Pets
      • Beers, Wines & Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics & Personal Care
      • Fashion
      • Food & Beverages
      • Furniture & Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewellery
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film & Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Health

      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • View All Health

      • Sports

      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • View All Sports

      • Travel

      • Amusement Parks & Tourist Attractions
      • Gambling & Casinos
      • Hotels & Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • Animal Welfare
      • Corporate Social Responsibility
      • Economic News, Trends & Analysis
      • Education
      • Environmental
      • European Government
      • Labour & Union
      • Natural Disasters
      • Not For Profit
      • Public Safety
      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • View All People & Culture

  • Overview
  • Distribution
  • Paid Placement
  • Multimedia
  • Disclosure Services
  • SocialBoost
  • Rooms
    • MediaRoom
    • ESG Rooms
  • AI Tools
  • General Enquiries
  • Media Enquiries
  • Partnerships
  • Hamburger menu
  • Cision PR Newswire UK provides press release distribution, targeting, monitoring, and marketing services
  • Send a Release
    • Phone

    • +44 (0)20 7454 5110 from 8 AM - 5:30 PM GMT

    • ALL CONTACT INFO
    • Contact Us

      +44 (0)20 7454 5110
      from 8 AM - 5:30 PM GMT

  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists
  • News in Focus
    • Browse News Releases
    • Regulatory News
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
    • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists
  • Overview
  • Distribution
  • Paid Placement
  • Multimedia
  • Disclosure Services
  • Cision Communications Cloud®
  • AI Tools
  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists
  • General Enquiries
  • Media Enquiries
  • Partnerships
  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists

Good Order Situation at Start of Second Quarter


News provided by

Heidelberger Druckmaschinen AG

06 Aug, 2019, 06:25 GMT

Share this article

Share toX

Share this article

Share toX

  • Demand for contract and subscription offerings continues to develop favorably – higher share of recurring sales
  • First quarter affected by reluctance to invest due to economic situation
  • Seasonal increase in net working capital hits free cash flow
  • Measures introduced to increase liquidity and safeguard profitability 

HEIDELBERG, Germany, Aug. 6, 2019 /PRNewswire/ -- Heidelberger Druckmaschinen AG (Heidelberg) has embarked on the second quarter of financial year 2019/2020 with a far better order situation, compensating in part for the weak first quarter in Europe in particular. The company is systematically continuing its digital transformation and expanding its innovative digital business models with a view to significantly reducing its exposure to economic fluctuations and increasing the share of recurring business in the medium to long term. Demand for the contract and subscription offerings that are the main focus of this strategy continued to grow in the first quarter of financial year 2019/2020. The medium-term goal is to increase the share of recurring sales – primarily from contract and subscription business – to around one-third of total sales. With customer demand rising, Heidelberg is expanding its subscription portfolio and is now offering additional contract options. At present, customers are offered a fully inclusive package that combines equipment, services, consumables, and software in one usage-based contract that runs over several years. In the future, however, they will also be able to combine and utilize individual components from this offering over a defined period of time and in line with set standards.

Towards the end of the first quarter in particular, the need for further strategic development of the company was highlighted by the increasing reluctance to invest, especially in western Europe, and associated shifts in sales due to the economic slowdown. Quarterly sales, EBITDA excluding restructuring result, and the net result after taxes, for example, were all down on the corresponding figures for the previous year. In mid-July, Heidelberg adapted its outlook for financial year 2019/2020 as a whole to reflect the changed business expectations.

Measures introduced to increase liquidity and safeguard profitability

Despite an improving order situation at the beginning of the second quarter and continuing positive effects from the successful Print China 2019 trade show, Heidelberg has immediately introduced measures to boost results. These include strategies to make working hours more flexible in the short term – such as working-time accounts and short-time working – and structural projects to achieve a sustained increase in profitability. Heidelberg has also initiated a program to significantly improve the net working capital and free cash flow. This involves closely scrutinizing many of the investments planned for the current financial year and the next, with a view to cutting planned investments by some € 20 million. Optimized lead times and inventory levels as well as better accounts receivable management are also envisaged to reduce the tied-up capital by around € 50 million. In addition, Heidelberg is considering portfolio adjustments, which will involve selling some smaller areas of the company, together with further structural optimizations. Overall, the liquidity potential identified totals some € 100 million.

"The good start to the second quarter means we're confident of achieving our planned business volume for the financial year. What's more, the positive impact of the numerous measures we've introduced to improve our results and free cash flow will be felt in the second half of the financial year," said Heidelberg CEO Rainer Hundsdörfer. "In the years ahead, the digital transformation is set to lessen our future exposure to economic fluctuations by increasing the share of recurring business to around one-third of our group sales. We've already made significant progress in this respect. Additionally, we are continuously expanding our market share by investing in our core business," he added.

Operational development in the first quarter affected by economic uncertainty

In the face of growing economic uncertainty, above all in central Europe, sales at Heidelberg fell from € 541 million to € 502 million in the first quarter of 2019/2020 (April 1, to June 30, 2019. Despite far higher demand in China following the successful Print China trade show, incoming orders of € 615 million as at June 30, 2019 were down on the previous year's figure (€ 665 million). The order backlog increased by around 12 percent, from € 654 million at the end of the previous financial year on March 31, 2019 to € 730 million as at June 30, 2019. This is partly due to the new subscription contracts, which will be reflected in the sales figures over their respective terms.

EBITDA excluding restructuring result amounted to around € 14 million (including an IFRS 16 impact in the region of € 5 million). This, too, was down on the unadjusted figure for the previous year of around € 20 million. EBIT excluding restructuring result totaled € –10 million (same quarter of previous year: € 2 million). The EBITDA margin excluding restructuring result (but including the impact of IFRS 16) was 2.8 percent, following a figure of 3.7 percent for the corresponding quarter of the previous year. The financial result improved from € –16 million in the equivalent quarter of the previous year to € –13 million. The net result after taxes, including income taxes, was € –31 million (previous year: € –15 million).

Seasonal increase in net working capital negatively affects free cash flow

The increase in net working capital, which is partly a result of lower customer advance payments due to the lower order intake, the high capacity utilization at the production site in Shanghai, and investments to expand digital business models in the course of the financial year resulted in a negative free cash flow of € –83 million (previous year: € –45 million). The considerable reduction in the actuarial interest rate for pensions in Germany and the net loss for the quarter were the main reasons for the lower equity of € 295 million at the end of the quarter, which is equivalent to an equity ratio of around 13 percent. Higher financial liabilities on the reporting date were primarily due to the first-time application of IFRS 16 (€ 55 million) and the negative free cash flow. The net financial debt rose accordingly, amounting to € 391 million at the end of the quarter. The leverage on the reporting date for the quarter was 2.1.

"In the short term, our focus is on optimizing the net working capital and on asset management. This will significantly reduce our debt and safeguard both our profitability and our financial stability," said CFO Dirk Kaliebe.

Outlook for financial year 2019/2020

Heidelberg is expecting sales for financial year 2019/2020 as a whole to match the previous year's level. The company anticipates that further stable expansion of its contract business will compensate for the economic slowdown and the associated reluctance to invest in equipment. In the current financial year, Heidelberg is targeting EBITDA excluding restructuring result of between 6.5 and 7 percent of sales, and is expecting to break even after taxes. Even factoring in the higher net financial debt following application of IFRS 16, the leverage is set to remain below the target of 2 previously announced by the company.

Image material, the interim report for the first quarter of financial year 2019/2020, and additional information about the company are available in the Press Lounge of Heidelberger Druckmaschinen AG at www.heidelberg.com.

Heidelberg IR now on Twitter:

Link to the IR Twitter channel: https://twitter.com/Heidelberg_IR

On Twitter under the name: @Heidelberg_IR

Other dates:

The scheduled publication date for the financial statements for the second quarter of 2019/2020 is November 6, 2019.

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 macroeconomic 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.

Further information:

Corporate Communications

Thomas Fichtl

Phone: +49-6222-82-67123

Fax: +49-6222-82-67129

E-mail: Thomas.Fichtl@heidelberg.com

 

Investor Relations

Robin Karpp

Phone: +49-6222-82-67120

Fax: +49-6222-82-99-67120

E-mail: robin.karpp@heidelberg.com

Related Links

http://www.heidelberg.com

Modal title

Contact PR Newswire

  • +44 (0)20 7454 5110
    from 8 AM - 5:30 PM GMT
  • General Enquiries
  • Media Enquiries
  • Partnerships

Products

  • Content Distribution
  • Multimedia Services
  • Disclosure Services
  • Cision Communications Cloud®

About

  • About PR Newswire
  • About Cision
  • Partnering Opportunities
  • Careers
  • APAC
  • APAC - Simplified Chinese
  • APAC - Traditional Chinese
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Indonesia
  • Israel
  • Japan
  • Korea
  • Mexico
  • Middle East
  • Middle East - Arabic
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United States
  • Vietnam

My Services

  • All News Releases
  • Customer Portal
  • Resources
  • Blog
  • Journalists
  • Data Privacy

Do not sell or share my personal information:

  • Submit via Privacy@cision.com 
  • Call Privacy toll-free: 877-297-8921

Contact PR Newswire

Products

About

My Services
  • All News Releases
  • Customer Portal
  • Resources
  • Blog
  • Journalists
+44 (0)20 7454 5110
from 8 AM - 5:30 PM GMT
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2025 PR Newswire Europe Limited. All Rights Reserved. A Cision company.