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Heidelberg Turns To Profit In Q1, Orders Down; Maintains FY21 Outlook; Stock Dips

Heidelberger Druckmaschinen AG (HBGRF.PK), a supplier to commercial, packaging and label printing companies, reported Thursday that its first-quarter net result after taxes was positive at 5 million euros, compared to previous year's negative 31 million euros.

EBIT excluding restructuring result was 40 million euros, compared to loss of 10 million euros last year. Heidelberg achieved EBITDA excluding restructuring result of 60 million euros, higher than prior year's 14 million euros.

Net sales were around 330 million euros, down by around one-third on the previous year's 502 million euros.

Incoming orders in the first three months dropped 44 percent to 346 million euros . The company recorded clear improvement in June compared to the previous two months of the quarter. This upward trend also continued through July.

As expected, sales and incoming orders still significantly impacted by COVID-19 pandemic, but steady signs of recovery discernible.

Further, the company maintained its fiscal 2020 outlook.

Heidelberg estimates that the net result after taxes will be significantly better than in the previous year but still clearly in the negative range. The company is aiming for an EBITDA margin excluding restructuring result that at least matches the previous year's figure.

Further, Heidelberg anticipates that annual sales will be significantly lower than those of the previous year's 2.35 billion euros.

The company anticipates further positive effects in the forthcoming quarters.

Further, Heidelberg is on track to improve its profitability by some 100 million euros in the medium term.

In Germany, Heidelberg shares were trading at 0.69 euro, down 5.46 percent.

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