Heidelberger Druckmaschinen AG reports it remains on track to record profitability for its current year, with this week’s reporting of its financial position for the first nine month (April 1 to December 31, 2013).
"After nine months, Heidelberg has made significant progress regarding profitability," stated Gerold Linzbach, CEO of Heidelberg. "As we expect our sales to pick up and the result to increase in the final quarter, we remain confident that we will meet our target of achieving a net profit."
Group sales after nine months for the period under review stood at €1.685 billion, which is down from the €1.905 billion mark recorded in the previous year’s corresponding period. Heidelberg states negative exchange rate movements accounted for around a third of this year over year decline, which the company explains to have also restrained investment activity in new machinery sales.
After the first nine months of financial year 2013/2014, Heidelberg’s EBITDA (excluding special items) increased from €4 million in the previous year to €67 million. The result of operating activities (EBIT), excluding special items, after nine months increased from €-58 million to €10 million, which marks the first time this financial year that Heidelberg has achieved a positive cumulative EBIT result.
For the first nine months, Heidelberg’s financial result after three quarters was €-41 million compared to €-36 million in the previous year’s corresponding period. After the first nine months of the current financial year, the pre-tax result improved from €-118 million in the previous year to €-32 million.
Net financial debt fell year-on-year to €271 million compared to €325 million in the previous year’s corresponding period. Free cash flow after nine months including restructuring expenses was recorded as €-10 million.