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Heidelberg switches to digital for growth

Thursday, 11 June 2015
By Print21

Heidelberg's Wiesloch plant

The offset giant Heidelberg says its new strategic alignment with increased focus on the services and digital sectors will produce a return to growth next year.

“We’ve made Heidelberg fit for the future,” said Gerold Linzbach, CEO. “The reorientation will enable Heidelberg to enjoy sustained profitable growth. From the current financial year onward, we expect to consistently achieve clearly positive net results.”

In a financial update from its headquarters in Germany, Heidelberger Druckmaschinen AG (Heidelberg) predicted a sales increase of between 2% to 4% for 2015/2016, despite a 4% drop posted for 2014/2015 – when it largely completed the group’s strategic reorientation.

The focus during the process was on realigning the group’s portfolio toward profitable areas of business and growth sectors, the company said in a statement. “The corporate structures have also been adapted to dynamic changes in markets. This has had a further significant impact on sales and results and has provided the basis for profitable growth.

“Future growth will be generated primarily by investment in services, consumables and digital printing.  Heidelberg continued to strengthen the services sector in the past financial year through acquisitions including BluePrint Products, Printing Systems Group, and Fujifilm Sverige. The newly acquired companies are set to generate sales of over € 100 million from the current financial year 2015/2016 onward.

“Heidelberg’s position in the digital printing sector was further strengthened with the takeover of Neo7even and the Gallus Group and the launch of a digital label-printing machine.

“The structures for offset printing have also been adapted to the market environment, enabling Heidelberg to respond more flexibly to market fluctuations and achieve cost savings in the low double-digit million euro range.”

Dirk Kaliebe, CFO at Heidelberg, said the company now had a stable financial footing. “With three pillars, the financing structure is now well balanced and basic funding is assured until 2022. This long-term financing framework provides a solid foundation for a further strategic realignment of the company.”

"Fit for the future": Heidelberg CEO Gerold Linzbach

 

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