Posts Tagged ‘Linzbach’

  • Upbeat Heidelberg – sales up five percent & debt down to EUR 325 million

    Sales figures are up to EUR 1.9 billion three quarters way through the financial year to December 31 with the company claiming it is on track to meet operating targets. It is expecting to make a profit next year.

    In a press release it reported quarterly sales were 9 percent up on the same period of the previous year, increasing from EUR 631 million to EUR 688 million. At the same time it reported an overall loss as… At EUR -55 million, the negative impact of the financial result was EUR 7 million less than in the previous year. The income before taxes after three quarters thus remained negative at EUR -111 million (previous year: EUR -91 million).

    The company attributed EUR 24 million in the nine months to the costs of its cost-cutting scheme, Focus 2012.

    “The financial year is going according to plan. The third quarter reflects the progress we had expected in terms of earnings. We are systematically moving toward our target of returning to profitability by the end of financial year 2013/2014. We are on the right track,” said Gerold Linzbach, Heidelberg CEO.

    It is a very different company now as a result of its Focus 2012 cost-cutting programme. It is expecting the programme to deliver annual savings of around EUR 180 million next financial year. The workforce is now 14,563 worldwide, down by around 1,100 in the past year.

    “The Focus 2012 efficiency program is progressing according to plan and is significantly improving our profitability. We have also made good progress with further reducing the company’s debt. The clearly positive free cash flow shows we are definitely heading in the right direction,” said Heidelberg CFO Dirk Kaliebe.

    According to Linzbach, the company recognises that a one-time cost-cutting program such as Focus 2012 cannot safeguard the future of Heidelberg. “Just like our successful customers, we must be dynamic in focusing our portfolio on profitable segments. Focus 2012 is highlighting potential for making our structures and processes more efficient on an ongoing basis. We can’t fight changes in the industry, so we need to respond quickly and harness the opportunities they present,” he said.