11.13.17
Nov. 13, 2017
www.heidelberg.com
Caption: Heidelberg’s corporate headquarters. (Source: Heidelberg)
Heidelberger Druckmaschinen AG (Heidelberg) made further progress in operational and strategic development in the first half of 2017/18 (April 1 to Sept. 30, 2017). Profitability improved significantly, resulting in a half-year net profit after taxes of €0.3 million for the first time since financial year 2007/08.
In the second quarter, the company made further progress in its future-oriented strategic issues such as technology leadership, digital transformation and operational excellence.
“The process of converting our company into a state-of-the-art digital technology group is progressing well,” said Rainer Hundsdörfer, CEO of Heidelberg. “With the launch of new subscription models for our customers and our portfolio of innovative products for the eMobility growth sector, we’re moving into new territory that offers enormous potential for growth.The necessary cultural shift has only just begun.”
Demand for digitally printed packaging and labels continue unabated. Heidelberg is well placed in this sector due to digital label presses from Gallus. This was underlined by the numerous orders for the new Gallus Labelfire at the Labelexpo trade show in Brussels. The period under review also saw shipment of the first industrial digital packaging printing press, Primefire. Further customer installations will be following shortly and customer interest is continuing to grow. Series production for these digital printing systems is scheduled to start at the beginning of 2018.
The company is already fully booked in this area for two years. The IAA in September 2017 also showcased the diverse range of options for implementing customer-specific design requirements in automotive interiors by using the innovative digital printing technology from the Omnifire press series. 3D vehicle parts such as ventilation nozzles, dashboards, light alloy rims etc. can be individually designed and finished.
In operational terms, the figures for the first half of financial year 2017/18 were as planned. Despite negative exchange rate effects of €18 million and the systematic reduction of trading activities with remarketed equipment, sales after six months were €1,054 million, almost the same as the previous year’s level of €1,072 million.
As expected, incoming orders in the post-drupa year of €1,234 million were below the previous year’s figure (H1 2016/17: €1,408 million). The order backlog was a solid €630 million compared to the €765 million at Sept. 30, 2016, which was boosted by drupa.
Profitability rose significantly on the previous year’s figures. EBITDA excluding re-structuring result was up from €45 million to €60 million after two quarters, with the EBITDA margin reaching 8.2% in the second quarter, following 7.5% in the same period of the previous year. At €0.3 million, the net result after taxes (after income taxes) was thus approximately €28 million up on the previous year’s figure (€–28 million).
The free cash flow (€-32 million, previous year: €0 million) was influenced by the acquisitions and investments made in the first six months in connection with constructing the new development center in Wiesloch. The net financial debt at September 30, 2017 was €259 million (previous year: €276 million) and the leverage was significantly lower than the unchanged target value of 2 at 1.3.
“Heidelberg is on a very sound financial footing, with financing secured for the long term. This will enable us to independently fund the strategic measures and the growth we are aiming for,” said Dirk Kaliebe, CFO at Heidelberg. “Systematically harnessing the potential from the efficiency program will also secure our medium-term profitability targets.”
www.heidelberg.com
Caption: Heidelberg’s corporate headquarters. (Source: Heidelberg)
Heidelberger Druckmaschinen AG (Heidelberg) made further progress in operational and strategic development in the first half of 2017/18 (April 1 to Sept. 30, 2017). Profitability improved significantly, resulting in a half-year net profit after taxes of €0.3 million for the first time since financial year 2007/08.
In the second quarter, the company made further progress in its future-oriented strategic issues such as technology leadership, digital transformation and operational excellence.
“The process of converting our company into a state-of-the-art digital technology group is progressing well,” said Rainer Hundsdörfer, CEO of Heidelberg. “With the launch of new subscription models for our customers and our portfolio of innovative products for the eMobility growth sector, we’re moving into new territory that offers enormous potential for growth.The necessary cultural shift has only just begun.”
Demand for digitally printed packaging and labels continue unabated. Heidelberg is well placed in this sector due to digital label presses from Gallus. This was underlined by the numerous orders for the new Gallus Labelfire at the Labelexpo trade show in Brussels. The period under review also saw shipment of the first industrial digital packaging printing press, Primefire. Further customer installations will be following shortly and customer interest is continuing to grow. Series production for these digital printing systems is scheduled to start at the beginning of 2018.
The company is already fully booked in this area for two years. The IAA in September 2017 also showcased the diverse range of options for implementing customer-specific design requirements in automotive interiors by using the innovative digital printing technology from the Omnifire press series. 3D vehicle parts such as ventilation nozzles, dashboards, light alloy rims etc. can be individually designed and finished.
In operational terms, the figures for the first half of financial year 2017/18 were as planned. Despite negative exchange rate effects of €18 million and the systematic reduction of trading activities with remarketed equipment, sales after six months were €1,054 million, almost the same as the previous year’s level of €1,072 million.
As expected, incoming orders in the post-drupa year of €1,234 million were below the previous year’s figure (H1 2016/17: €1,408 million). The order backlog was a solid €630 million compared to the €765 million at Sept. 30, 2016, which was boosted by drupa.
Profitability rose significantly on the previous year’s figures. EBITDA excluding re-structuring result was up from €45 million to €60 million after two quarters, with the EBITDA margin reaching 8.2% in the second quarter, following 7.5% in the same period of the previous year. At €0.3 million, the net result after taxes (after income taxes) was thus approximately €28 million up on the previous year’s figure (€–28 million).
The free cash flow (€-32 million, previous year: €0 million) was influenced by the acquisitions and investments made in the first six months in connection with constructing the new development center in Wiesloch. The net financial debt at September 30, 2017 was €259 million (previous year: €276 million) and the leverage was significantly lower than the unchanged target value of 2 at 1.3.
“Heidelberg is on a very sound financial footing, with financing secured for the long term. This will enable us to independently fund the strategic measures and the growth we are aiming for,” said Dirk Kaliebe, CFO at Heidelberg. “Systematically harnessing the potential from the efficiency program will also secure our medium-term profitability targets.”