Share this article
Share this article
HEIDELBERG, Germany, Feb. 10, 2021 /PRNewswire/ Due to the increasingly tangible successes yielded by the company s transformation, plus growing demand from China and, since the third quarter, from Europe, too, Heidelberger Druckmaschinen AG (Heidelberg) is raising its target operating return for financial year 2020/21 as a whole. Consequently, the company anticipates that its EBITDA margin excluding restructuring result will grow to approximately 7 percent, even though the coronavirus pandemic may lead to a sales decline of around € 450 million to € 500 million compared to the previous year (previous year s sales: € 2,349 million) for the year as a whole. Previously, Heidelberg had anticipated an EBITDA margin that would, at its lowest, equal that of the previous year at 4.3 percent. It is also an encouraging sign for the coming months that print volumes among Heidelberg customers have almost reached the levels of the previous
Heidelberg reports faster progress as shares spike Jo Francis Wednesday, February 10, 2021
Heidelberg’s share price jumped by 25% after it reported a recovery in demand in China and Europe and upgraded its operating profit forecasts for the full year.
Heidelberg is doubling Wallbox production
In its Q3 and nine-month report, Heidelberg said that despite expecting an overall fall in sales year-on-year of as much as €500m (£438m), it was anticipating EBITDA margins prior to restructuring costs of around 7% (prior year: 4.3%).
Sales in the group jumped by 25.3% to a 52-week high of €1.50 following the news.
While Heidelberg admitted that the recent non-completion of its sale of Gallus Group was “clouding the positive picture”, CFO Marcus Wassenberg stated: “All in all, we have made much faster and more successful progress with our company’s transformation than previously reported… We are therefore confident we will return t
CET
Order levels recovering and transformation taking effect - Heidelberg raises target margin for 2020/21 (2)
Due to the conversion of securities into cash and cash equivalents and inflows from the aforementioned portfolio measures and improvements in net working capital, free cash flow was improved in the period under review by EUR 63 million to EUR -10 million. A positive figure of EUR 42 million was achieved in the third quarter. Following the comprehensive debt relief measures, net financial debt is EUR 127 million and thus EUR 262 million below the comparable figure from the previous year. Against this backdrop, leverage (the ratio of net financial debt to EBITDA excluding restructuring result from the last four quarters) dropped to just 1.0 (previous year: 1.9). Despite the slightly positive net profit after taxes, the further significant reduction in actuarial interest rates for the valuation of pension obligations in Germany meant that the equity ratio as per IFRS dropped
Heidelberg Print Media Academy Photo Radosław Drożdżewski (Zwiadowca21)
Heidelberg has sold the Print Media Academy building across the street from the town’s central station. Although the glass and steel structure was somewhat symbolic – it may ultimately be seen as a re-enactment of a heavy metal fantasy that went awry as the demand for sheetfed offset presses declined over the past two decades. It is reported that the building is sold to a Luxembourg-based investment company for a low double-digit million Euro sum. The erstwhile owners will continue to lease some office space in a building in a prime location that must have been expensive to build and maintain.
The sale of Gallus Group by Heidelberg has not been completed after Swiss corporation benpac holding failed to make the purchase price of EUR 120 million.
The five sites and around 430 employees of the Gallus Group will remain with Heidelberg. Heidelberg will continue to handle sales and service for the Gallus portfolio.
Heidelberg said it will now examine various options for the corporate future of Gallus . Irrespective of the Gallus transaction, said the company in a statement, Heidelberg is already benefiting considerably from the transformation program launched in the current financial year to further stabilize the company financially. Since March 2020, net debt has been reduced by more than EUR 250 million from a peak of EUR 390 million, and liquidity has been improved by around EUR 450 million. As a result of the accelerated M&A program, Heidelberg will generate proceeds in the mid-double-digit million EUR range from the transactions completed in December 2020 al