Heidelberger Druckmaschinen Q2 Net result Rises; Reorganizes Management Board

Heidelberger Druckmaschinen AG (HBGRF.PK), a German precision mechanical engineering company, reported that its second-quarter net result after taxes rose to 14 million euros from 8 million euros last year.

EBITDA, excluding restructuring result, was up 28 percent to 55 million euros from the previous year.

Quarterly sales rose 9 percent to 622 million euros from the prior year.

The company said it is using three main approaches to address the working capital and free cash flow situation, which remains unsatisfactory despite improvements in the second quarter.

The planned investments are being cut by some 20 million euros. A reduction of around 50 million euros in tied-up capital is to be achieved by optimizing throughput times and inventory levels while also improving accounts receivable management. In addition, portfolio adjustments and further structural optimizations are expected to generate around 30 million euros in cash for the company. Overall, the liquidity potential thus totals about 100 million euros.

Heidelberg confirmed its targets for financial year 2019/2020 as a whole, with sales at the same level as in the previous year. The target range for EBITDA excluding restructuring result is 6.5 to 7 percent of sales, and a break-even net result after taxes is expected.

In a separate press release, Heidelberger Druckmaschinen said that Stephan Plenz (54), Member of the Management Board responsible for technology and the Heidelberg Digital Technology segment, is leaving the company by mutual agreement at the end of his current contract in June 2020.

The company noted that the technology department will be headed by Rainer Hundsdörfer, Chairman of the Management Board, while Purchasing will move to the Finance department of CFO Marcus Wassenberg. Sales and digitization will be concentrated at Chief Digital Officer Prof. Dr. Ulrich Hermann. The handover will begin immediately.

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