HEIDELBERG, Germany,
February 4, 2015 /PRNewswire/ --
- Strategic portfolio streamlining completed
- Restructuring expenses of approximately € 70
million
- Operating result after nine months improved
- Strong sales and improved result expected for
Q4
- Outlook: Basis for target EBITDA margin of at least 8
percent in FY 2015/2016
After nine months of financial year 2014/2015 (April 1 to December 31, 2014), the group
restructuring measures introduced at Heidelberger Druckmaschinen AG
(Heidelberg) are on course. Consequently, measures aimed at
strategically streamlining the portfolio have been completed and
will take effect predominantly from the start of the new financial
year. By reducing low-margin activities, boosting the profitability
of core sheetfed offset operations, and expanding the service and
consumables business as well as the digital sector, the company has
laid the foundations for achieving the planned EBITDA margin of at
least 8 percent in financial year 2015/2016.
Successful development in all four strategic areas of
activity
In specific terms, strategic development at Heidelberg during
the first nine months included streamlining the postpress portfolio
and adapting the sheetfed offset sector to new market conditions -
a process that will be ongoing until the end of the financial year.
The first step was also taken to expand the Consumables business
area, with the takeover of Belgium-based BluePrint Products. In the
digital sector, significant progress was made in developing new
products with partners Gallus, Fuji, and Ricoh and through the
acquisition of software provider Neo7even. The first "4D printing
systems" for customized printing on three-dimensional objects were
also delivered in the current financial year.
"The main focal point in the current financial year is to
realign the portfolio so as to place Heidelberg on a sustainably
profitable footing," said Heidelberg CEO Gerold Linzbach. "We have geared our portfolio
toward profitability and growth and adjusted resources accordingly.
I am confident that our strategic restructuring will enable us to
achieve and maintain our target margin from next financial year
onward and return to growth in the future."
Operating performance after nine months
improved
As forecast, the first nine months of financial year 2014/2015
were characterized by non-recurring effects as part of the
strategic streamlining of the company's portfolio. Despite the
comprehensive portfolio restructuring and the associated
transitional phases for a number of activities, the company has
retained its operating profitability before special items.
In terms of volumes, the most notable development was the
slowdown in sales of new machinery in China, which can be attributed to economic
developments in the country. Consequently, sales after nine
months amounted to € 1.552 billion, which is below the
previous year's figure of € 1.685 billion. By contrast, all
regions other than Asia/Pacific
were in line with expectations.
Compared over nine months, and despite lower sales, EBITDA
excluding special items increased to € 80 million
(previous year: € 67 million) due to operational measures
including the Gallus transaction, while EBIT excluding special
items rose from € 10 million to € 29 million.
During the period under review, special items - primarily for
provisions for portfolio optimization measures - were € -72
million, of which € -55 million applied to the third quarter
alone. After nine months, the financial result was € -49
million (previous year: € -41 million). Due to the high
non-recurring effects, the net result before taxes in the
period under review dropped to € -92 million (previous year:
€ -32 million) and the net result after taxes fell to
€ -95 million (previous year: € -40 million).
Free cashflow after nine months was € -16 million
(previous year: € -10 million). The value in the third quarter
- € 14 million - was clearly positive compared with the same
period of the previous year (€ -38 million). Accordingly, the
net financial debt was lowered to € 250 million
(previous quarter: € 272 million) and remains at a low level.
Together with the improvements at operating level, this enabled the
leverage to be maintained below the target level of 2. The equity
ratio was 9 percent (end of financial year 2013/2014: 16.0
percent).
"The non-recurring expenditure necessary for portfolio
restructuring is within expectations. In operational terms, we are
also on course to achieve our annual targets with a strong final
quarter," said CFO Dirk Kaliebe.
As at December 31, 2014, the
Heidelberg Group had a global workforce of 12,280 plus 534
trainees (previous year: 12,851 plus 621 trainees).
Outlook: Basis for target EBITDA margin of at least 8 percent
in FY 2015/2016
Sales and earnings for financial year 2014/2015 as a whole will
be influenced by the implementation of the portfolio optimization
measures initiated. The reorganization of postpress is expected to
lead to lower sales in this area in the short term until
implementation is complete. Furthermore, the company will continue
to actively reduce low-margin business. Based on these assumptions,
including the economic downturn in China, sales in financial year 2014/2015 are
expected to be down around 5 percent year-on-year on the whole.
The portfolio optimization measures initiated will have both a
boosting and a dampening impact on earnings during the current
financial year. Overall, the measures should further improve the
company's operating profitability, thereby bringing Heidelberg
closer to its target of an operating margin of at least 8 percent
in terms of EBITDA. Adjusted for the non-recurring effects for
portfolio optimization and cost-cutting measures, it is the
company's continued aim to achieve an increase in net result after
taxes.
For additional details about the company and image material,
please visit the Press Lounge of Heidelberger Druckmaschinen AG at
http://www.heidelberg.com.
The report on the third quarter of financial year 2014/2015 can
be accessed at http://www.heidelberg.com.
Next reporting date: The Annual Accounts Press
Conference, Annual Analysts' and Investors' Conference for
2014/2015 is scheduled for June 10,
2015.
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.
Further information:
Heidelberger Druckmaschinen AG
Corporate Public Relations
Thomas Fichtl
Phone: +49(0)6222-82-67123
Fax: +49(0)6222-82-67129
E-mail: thomas.fichtl@heidelberg.com
Investor Relations
Robin Karpp
Phone: +49(0)6222-82-67120
Fax: +49(0)6222-82-99-67120
E-Mail: robin.karpp@heidelberg.com