Heidelberg expects annual loss despite strong sales surge in FY12
Heidelberg is preparing for an annual net loss of around (EU) €-110 million despite seeing a five per cent sales surge over the financial year ending 2013.
The offset giant released its fourth quarter financial results on 7 May, reporting a strong quarter ending March 2013 compared to the same period the previous year.
Sales for the period from January to March 2013 rose to €830 million, well in excess of the previous year’s result of €785 million. The result of operating activities excluding special items for the quarter under review improved from €22 million in the previous year to €60 million for this year’s quarterly period.
However, with the final financial quarter for the year wrapped up, Heidelberg says it expects to see a net loss of €-110 million for the entire financial year, when special items for the year are taken into account.
In a statement, the company said:
“Due to special items and the negative financial result, preliminary calculations indicate that the net loss will be around EUR -110 million (previous year: EUR -230 million).”
By contrast, the company’s Preliminary incoming orders for the period increased to €2.822 billion, up from the previous year’s €2.555 billion.
Meanwhile, Heidelberg’s preliminary free cash flow for the year took a hit, with the yearly figure looking to stand at around €-20 million, a significant drop from the previous year’s figure of €10 million. Expenses relating to the company’s ‘Focus 2012’ restructuring strategy played a large part in this cash flow reversal.
Even though the result of operating activities excluding special items for the quarter under review improved from €22 million in the previous year to €60 million, negative special items amounted to €41 million in the fourth quarter alone – mainly due to provisions for stepping up specific measures as part of Focus 2012.
However, according to Dr. Gerold Linzbach (pictured), Heidelberg CEO, these figures fall well within the company’s expected forecasts for the year.
“By meeting our forecast for the year, we have reached a key milestone on our way to profitability,” said Linzbach. “Focus 2012 lays the foundation for us to start making a profit again from financial year 2013/2014 onwards. By means of optimized structures we have also made a start on adapting the company more effectively to the market segments in which we operate and thus increase future profit contributions,” he added.
Heidelberg CFO Dirk Kaliebe, said: “Our Focus 2012 efficiency program is being implemented as planned. Given the changed market conditions, we have intensified a number of measures to secure our future profitability targets.
“Heidelberg has a sound financial footing and benefits from a stable liquidity framework. The strong free cash flow in the final quarter has reduced the net financial debt to a low level,” he said.