Heidelberger Druckmaschinen AG (HBGRF.PK) Thursday confirmed its target for net profit in the current fiscal year, as the printing machines maker benefits from its Focus 2012 efficiency program.
Heidelberg CEO Gerold Linzbach said, ''In the financial year just closed, we introduced the necessary steps to return to profitability in financial year 2013/2014. Heidelberg now has a more flexible setup with clearly assigned responsibilities. We are focusing our full attention on our profitability by adapting to the market situation.''
Net loss for the year narrowed to 110 million euros ($147.2 million) from 230 million euros reported last year. The latest results included special items amounting to 65 million euros, mostly due to costs related to the Focus 2012 program. Last year, it was 142 million euros .
Sales climbed to 2.735 billion euros from 2.596 billion euros in the prior year. Sales of new equipment did not quite meet expectations and growth was less dynamic in countries such as Brazil.
Sales in China increased from last year, and accounted for around 16 percent of total sales, making it the company's largest single market.
Heidelberg Equipment sales rose 6 percent to 1.712 billion euros, comprising 60 percent of total sales. During the year, orders for large-format sheetfed offset presses rose overall, while orders for small-format presses were lower than in previous years. Heidelberg Services segment sales rose 4 percent to 1.012 billion euros.
Incoming orders increased to 2.822 billion euros from 2.555 billion euros. Order backlog at March 31 slid 0.9 percent to 502 million euros.
Earnings Before Interest, tax, Depreciation and Amortization, or EBITDA, excluding special items improved to 111 million euros from 90 million euros due to savings made by the Focus 2012 program.
Net loss for the fourth quarter narrowed to 22 million euros from 151 million euros, as sales improved to 830 million euros from 784 million euros.
Confirming its target for net profit in fiscal 2013/2014, the company said sales are expected to match the level seen in the prior year. As in the previous year, Heidelberg forecast that the share of sales would again be significantly higher in the second half.
In the first quarter, Heidelberg is still expecting a clearly negative result, though this is expected to be above the figure for the previous year. Results are expected to improve further in the following quarters.
The firm is assuming stable to slightly rising sales in the years after the 2014/2015 financial year.
The company's medium-term goal is to further reduce its debt to no more than twice the operating result before depreciation and amortization.
The stock is falling 2.5 percent in early morning trade at 1.96 euros.
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