Heidelberger Druckmaschinen AG reports it has ended the latest quarter with a positive net result after taxes, and that its net result before taxes after nine months (April 1 to December 31, 2015) reached the break-even point. Based on these numbers, the German press maker explains, following its recent realignment, it is on track to record a positive net result after taxes for financial year 2015/2016.
“We’ve made good progress with our goal of ensuring long-term profitability at Heidelberg. Our new portfolio is more closely geared toward stable market segments, is more profitable, and creates the conditions for further growth,” said Heidelberg CEO Gerold Linzbach.
Group sales were 16 percent up on the equivalent nine months of the previous year at €1.802 billion (previous year: €1.552 billion). This figure includes positive exchange rate effects amounting to €93 million.
Heidelberg explains the successful integration of the newly acquired PSG Group made a substantial contribution to the higher sales, while the Heidelberg Services segment accounted for almost half of the company’s sales after nine months.
At a regional level, Heidelberg states sales were well up in North America and Europe, while Eastern Europe and Latin America remained stable. In the third quarter, however, Heidelberg explains subdued market development in China was reflected by a fall in orders. Total incoming orders in the reporting period were significantly higher than in the previous year at €1.904 billion (previous year: €1.780 billion).
Heidelberg’s EBITDA excluding special items as at December 31, 2015, increased to €119 million (previous year: €80 million), while EBIT excluding special items doubled to €65 million (previous year: €29 million). The Heidelberg Services segment is still on target to achieve the planned EBITDA margin of nine to 11 percent. Regional weaknesses, especially in China, mean the Heidelberg Equipment segment has not yet been able to reach the expected EBITDA target margin of four to six percent.
Heidelberg’s pre-tax result after nine months reached the break-even point (€0 million; previous year: €–92 million). The net result after taxes for the third quarter improved by €60 million to €7 million (previous year: €–53 million) and the nine-month figure of €–7 million, explains Heidelberg, was better than the €–95 million recorded for the equivalent period of the previous year.
The company’s free cash flow after nine months was €–37 million (previous year: €–16 million), based primarily on restructuring costs and the PSG acquisition. The net debt for the quarter under review was at €282 million (March 31, 2015: €256 million).
“We have created the financial scope to finance acquisitions and invest in growth and innovation. In the future, we will keep working on further optimizing our financing framework and ensuring the continued strategic development of Heidelberg,” said CFO Dirk Kaliebe.
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