Heidelberg publishes preliminary figures for fourth quarter of financial year 2011/2012: Positive developments in sales, operating result, and free cash flow - no improvement achieved in result for year as a whole due to higher provision for risks

Heidelberger Druckmaschinen AG  / Key word(s): Preliminary Results

20.04.2012 17:52

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The issuer is solely responsible for the content of this announcement.

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Heidelberg publishes preliminary figures for fourth quarter of financial
year 2011/2012: Positive developments in sales, operating result, and free
cash flow - no improvement achieved in result for year as a whole due to
higher provision for risks

  - Fourth quarter sales up on previous year at around EUR 780 million

  - Operating result excluding special items for fourth quarter improves to
    around EUR 20 million, while year as a whole matches previous year's
    level

  - Aim of achieving significantly better operating result for year as a
    whole cannot be achieved due to higher provision for risks

  - Positive free cash flow of around EUR 30 million in fourth quarter
    higher than expected - net debt still at low level

Based on preliminary calculations, Heidelberger Druckmaschinen AG
(Heidelberg) achieved an increase in sales in the fourth quarter of
financial year 2011/2012 (January 1, 2012 to March 31, 2012) compared to
the previous year - from EUR 745 million to around EUR 780 million, thus
reaching the highest quarterly sales figure for the last three years.

The preliminary result of operating activities excluding special items
continued to improve as the year progressed, reaching around EUR 20 million
in the quarter under review (previous year: EUR 30 million). The higher
provision for risks had a negative impact. As a result of Eastman Kodak
Company currently being subject to Chapter 11 proceedings under the US
Bankruptcy Code, this provision was in the low double-digit million euro
range. Heidelberg sublets an administrative and production building in
Rochester, U.S., to Eastman Kodak and the associated provision for risks is
an appropriate response to the current appraisal of the situation.

For this reason, the aim of significantly improving the operating result
excluding special items for financial year 2011/2012 as a whole cannot be
achieved. Based on preliminary calculations, this figure will once again be
slightly positive, somewhere between EUR 0 million and EUR 5 million
(previous year: EUR 4 million).

As expected, preliminary incoming orders in the fourth quarter were down on
the previous year's level of EUR 637 million at just over EUR 570 million.
Based on previous experience, this is because print shops are holding back
with orders in the quarter prior to drupa (which takes place in May 2012).

The preliminary free cash flow for the fourth quarter developed favorably
to around EUR 30 million (previous year: EUR -16 million) and was therefore
better than expected by the company.

In March 2012, Heidelberg started implementing the FOCUS 2012 efficiency
program in Germany, too. This program is intended to achieve sustainable
savings of EUR 180 million and an operating result excluding special items
of around EUR 150 million in financial year 2013/2014.

Important note:
This press release contains forward-looking statements based on assumptions
and estimations by the Management Board of Heidelberger Druckmaschinen
Aktiengesellschaft. Even though the Management Board is of the opinion that
those assumptions and estimations are realistic, the actual future
development and results may deviate substantially from these
forward-looking statements due to various factors, such as changes in the
macro-economic situation, in the exchange rates, in the interest rates and
in the print media industry. Heidelberger Druckmaschinen Aktiengesellschaft
gives no warranty and does not assume liability for any damages in case the
future development and the projected results do not correspond with the
forward-looking statements contained in this press release.

Contact:
Heidelberger Druckmaschinen AG
Corporate Public Relations
Thomas Fichtl  
Phone: +49 (0)6221 92 5900
Mobile: +49 (0)173 318 69 47
Fax: +49 (0)6221 92 5069
E-Mail: thomas.fichtl@heidelberg.com


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Information and Explaination of the Issuer to this News:

Heidelberg publishes preliminary figures for fourth quarter of financial
year 2011/2012: Positive developments in sales, operating result, and free
cash flow - no improvement achieved in result for year as a whole due to
higher provision for risks

* Fourth quarter sales up on previous year at around EUR 780 million
* Operating result excluding special items for fourth quarter improves to
around EUR 20 million, while year as a whole matches previous year's level
* Aim of achieving significantly better operating result for year as a
whole cannot be achieved due to higher provision for risks
* Incoming orders of more than EUR 570 million for fourth quarter confirm
expected reluctance of customers to invest in quarter preceding drupa trade
show
* Positive free cash flow of around EUR 30 million in fourth quarter higher
than expected - net debt still at low level

Based on preliminary calculations, Heidelberger Druckmaschinen AG
(Heidelberg) achieved an increase in sales in the fourth quarter of
financial year 2011/2012 (January 1, 2012 to March 31, 2012) compared to
the previous year - from EUR 745 million to around EUR 780 million, thus
reaching the highest quarterly sales figure for the last three years.

The preliminary result of operating activities excluding special items
continued to improve as the year progressed, reaching around EUR 20 million
in the quarter under review (previous year: EUR 30 million). The higher
provision for risks had a negative impact. As a result of Eastman Kodak
Company currently being subject to Chapter 11 proceedings under the US
Bankruptcy Code, this provision was in the low double-digit million euro
range. Heidelberg sublets an administrative and production building in
Rochester, U.S., to Eastman Kodak and the associated provision for risks is
an appropriate response to the current appraisal of the situation.

For this reason, the aim of significantly improving the operating result
excluding special items for financial year 2011/2012 as a whole cannot be
achieved. Based on preliminary calculations, this figure will once again be
slightly positive, somewhere between EUR 0 million and EUR 5 million
(previous year: EUR 4 million).

As expected, preliminary incoming orders in the fourth quarter were down on
the previous year's level of EUR 637 million at just over EUR 570 million.
Based on previous experience, this is because print shops are holding back
with orders in the quarter prior to drupa (which takes place in May 2012).

'Sales in the final quarter were encouragingly high. The operating result
continued to improve as the year went on. However, due to the necessary
balance sheet provision, we were unable to achieve our target for the year
as a whole,' said Heidelberg CEO Bernhard Schreier. 'drupa has come at
exactly the right time and we expect this key trade show to give the
industry a favorable impetus. Customer response to the numerous innovations
at the show is very promising so far,' he continued.

The preliminary free cash flow for the fourth quarter developed favorably
to around EUR 30 million (previous year: EUR -16 million) and was therefore
better than expected by the company. 

'Thanks to consistent asset management, we achieved a positive free cash
flow also for the past financial year and managed to keep net debt at a low
level,' said
Heidelberg CFO Dirk Kaliebe. 'Heidelberg is on a stable footing. Our FOCUS
2012 efficiency program will help us achieve our earnings targets,' he
added.

In March 2012, Heidelberg started implementing the FOCUS 2012 efficiency
program in Germany, too. This program is intended to achieve sustainable
savings of EUR 180 million and an operating result excluding special items
of around EUR 150 million in financial year 2013/2014.

As of March 31, 2012, the Heidelberg Group had a workforce of approximately
15,400 worldwide (including trainees).

Other dates:
The scheduled publication date for the final figures for financial year
2011/2012 is June 14, 2012.

Heidelberg at drupa 2012

Today's print media service providers are faced with a dynamic and
challenging market. Companies that want to achieve success in an
environment of this kind need to optimize their business models by seizing
on market trends in the industry and using them to their advantage.

During drupa 2012, from May 3 to 16, Heidelberg will be showcasing in Hall
1 an extended portfolio of products and solutions that have been developed
specifically for the latest market requirements. The trade show
presentation, held under the banner 'Discover HEI', will center on lean
production (HEI Productivity), green printing (HEI Eco), web-to-print (HEI
Integration), short-run-printing (HEI Flexibility), differentiation through
coatings and special effects (HEI Emotions), the future of packaging
printing (HEI End), and gaining an edge through the latest know-how (HEI
School). The company is exhibiting solutions that enable print shops and
postpress businesses to meet the latest market requirements in full.

www.drupa.heidelberg.com

For further information about the company and image material, please visit
the Press Lounge of Heidelberger Druckmaschinen AG at www.heidelberg.com.

Important note:
This press release contains forward-looking statements based on assumptions
and estimations by the Management Board of Heidelberger Druckmaschinen
Aktiengesellschaft. Even though the Management Board is of the opinion that
those assumptions and estimations are realistic, the actual future
development and results may deviate substantially from these
forward-looking statements due to various factors, such as changes in the
macro-economic situation, in the exchange rates, in the interest rates and
in the print media industry. Heidelberger Druckmaschinen Aktiengesellschaft
gives no warranty and does not assume liability for any damages in case the
future development and the projected results do not correspond with the
forward-looking statements contained in this press release.

For further information, please contact: 
Heidelberger Druckmaschinen AG
Corporate Public Relations
Thomas Fichtl
Phone: +49 (0)6221 92-5900
Fax: +49 (0)6221 92-5069
E-Mail: thomas.fichtl@heidelberg.com

20.04.2012 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      Heidelberger Druckmaschinen AG
              Kurfürsten-Anlage 52-60
              69115 Heidelberg
              Germany
Phone:        +49 (0)6221 92-60 22
Fax:          +49 (0)6221 92-51 89
E-mail:       investorrelations@heidelberg.com
Internet:     www.heidelberg.com
ISIN:         DE0007314007
WKN:          731400
Indices:      SDAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart
 
End of Announcement                             DGAP News-Service
 
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