August 02, 2005 01:00 ET

Financial Year 2005/2006: Heidelberg Presents Figures for First Quarter

HEIDELBERG, Germany--(CCNMatthews - Aug 2, 2005) -

Heidelberger Druckmaschinen AG (FWB:HDD):

The following information for the past financial year 04/05 relates to the continuing operations of the Heidelberg Group. These include the Press, Postpress and Financial Services divisions. The Digital Division was sold and deconsolidated on May 1, 2004, the Web Systems Division on August 6, 2004. All figures for the previous year mentioned in this press information have been adjusted to ensure the figures stated provide a basis for comparison.

-- Incoming orders up significantly on previous quarter

-- Sales climb by 10 percent over the comparable period of the previous year

-- Positive operating result of Euro 7 million

-- Outlook for full financial year 05/06 unchanged

Heidelberger Druckmaschinen AG (Heidelberg) (FWB: HDD) has begun the new financial year 2005/2006 with the strongest first quarter sales figures for its continuing operations for three years. At Euro 660 million, sales generated by the Heidelberg Group in the first three months (April 1 to June 30) were 10 percent up on the comparable figure for the previous year (continuing operations previous year: Euro 602 million). Incoming orders in the first quarter were Euro 886 million (continuing operations previous year: Euro 1.14 billion, due to drupa in May 2004). The Company succeeded in increasing incoming orders significantly over the fourth quarter of financial year 2004/2005 (Q4 2004/2005: Euro 780 million). At Euro 1.23 billion, the order backlog at the end of the first quarter was up on the order backlog as at March 31, 2005 (Euro 1.05 billion) thanks to the positive level of incoming orders.

"The new financial year has got off to a good start in all regions," said Bernhard Schreier, CEO of Heidelberger Druckmaschinen AG. "The global increase in demand for print products had a positive effect on our performance. The emerging markets in particular continue to show robust growth, currently accounting for more than 40 percent of incoming orders."

The Heidelberg Group recorded an operating result of Euro 7 million in the period under review (continuing operations previous year: Euro -21 million). The net profit in the first quarter broke even (previous year including discontinuing operations: Euro -63 million).

"In the first quarter it is already clear that, thanks to the measures we have introduced, we have significantly improved the profitability in our divisions," said Dr. Herbert Meyer, the Company's CFO. "Nonetheless, exchange rate movements and developments in raw material and energy prices still present a risk."

As of June 30, 2005, the Heidelberg Group had a workforce of 18,583 worldwide (previous year: Approx. 21,200 including the Web Systems Division).

Improvements in sales and results in the Press and Postpress Divisions

In the Press Division (offset printing), sales rose to Euro 567 million in the first three months (previous year: Euro 513 million). Incoming orders in the period under review were Euro 788 million (previous year: Euro 1.03 billion). The operating profit in the first quarter totaled Euro 7 million (previous year: Euro -22 million).

In the Postpress Division (finishing), quarterly sales were Euro 80 million (previous year: Euro 70 million). Incoming orders were Euro 85 million (previous year: Euro 98 million). The operating result in the period under review improved over the previous year's figure to Euro -4 million (previous year: Euro -8 million).

In all regions, sales in the first quarter were up on the comparable figure of the previous year, except in Eastern Europe where they were Euro 8 million lower than in the same quarter of the previous year.

Outlook for financial year 2005/2006 unchanged

The Company expects to see moderate growth in sales for the current financial year 2005/2006 on a comparable basis. During the current financial year, Heidelberg is planning to surpass both the result of operating activities of financial year 2004/2005 of Euro 167 million and the after-tax result of Euro 61 million.

The complete report for the first quarter of 2005/2006 will be available online at www.heidelberg.com from 9.00 a.m. onwards.

For further information visit the Internet Press Lounge at www.heidelberg.com.

Contact Information