Heidelberg achieves financial targets for year in its best quarter since 2008

Rainer Hundsdörfer.
Rainer Hundsdörfer.

In the final quarter of its financial year 2016/2017 (January 1, 2017 to March 31, 2017), Heidelberg recorded its best sales and result since 2008. With a further improvement in the net profit after taxes to €36 million (previous year = €28 million) based on preliminary figures, the group achieved its stated objective for the year as a whole with a sustained return to profitability. The improvement also underscores the success of the strategic realignment towards a digital company that was initiated. “Heidelberg has achieved its targets for 2016/2017 thanks to an excellent final quarter. The net profit after taxes improved once again and we’ve created a solid basis for the company’s further development,” said CEO Rainer Hundsdörfer. “We now need to gear our strategy towards becoming a digital company focused on customer needs. This will also bring the expected growth in sales, and a further substantial improvement in profitability in the future,” he added.

Dirk Kaliebe.
Dirk Kaliebe.

“We’ve significantly increased the free cash flow and further improved our balance sheet in reporting year 2016/2017,” said Heidelberg CFO Dirk Kaliebe. “This lays a firm foundation for the Group to independently finance our transition into the digital world and step up our pursuit of attractive takeover targets. We’ll be announcing some successes in this regard in the near future.”

Strategic focus is digital

Heidelberg has created an excellent basis for itse strategic development towards a digital company that was announced for the first quarter at the beginning of February, 2017. The group’s restructuring for the company’s digital future took effect on April 1, 2017 under the motto “Heidelberg Goes Digital.” This move saw the Heidelberg Digital Technology (HDT) and Heidelberg Digital Business & Services (HDB) segments established. HDT combines sheetfed offset, label printing, and post-press operations, and is responsible for developing, producing and marketing the appropriate technologies and products for new business models. HDB, meanwhile, is where Heidelberg manages its operations relating to services, consumables, re-marketed equipment, digital printing technology, and solutions throughout the value-added chain. The third segment – Heidelberg Financial Services (HDF) – will remain the same. Numerous measures are being introduced in the new financial year and some of them have already been implemented, the OEM added.

The objective is to increasingly generate substantial growth potential with a comprehensive portfolio developed for specific customer needs throughout the value-added chain – from equipment and consumables all the way through to services. “At the same time, enhanced efficiency will lead to further improvements in profitability at Heidelberg,” the company said.

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Tony Curcio is the editor of Graphic Arts Magazine.