Heidelberg Reports Turnaround in Earnings

Published: June 12, 2005, By pffc-online.com

PRESS RELEASE

KENNESAW, GA— Heidelberg reports that earning for financial year 2004/2005 (April 1, 2004 to March 31, 2005) have experienced a turnaround in sales, incoming orders, and operating profit. Outlook for the next financial year is expected to improve.

Results are as follows:

• Incoming orders climb by 8% to 3.5 billion Euro.
• Net profit of 61 million Euro achived.
• Sales of the Heidelberg Group grew 3% to 3.207 billion Euro.
• Sales of the Press Div. (offset printing) increased by 5% to 2.797 billion Euro.
• Operating profit improved from 10 million Euro to 160 million Euro.
• Free cash flow of 154 million Euro exceeded expectations.
• The Management and Supervisory Boards will propose that the Annual General Meeting on July 20, 2005, approves a dividend of 0.30 Euro per share for the year under review.

Additionally, the new production site in China is being constructed this financial year in the Shanghai Qingpu Industrial Zone to the west of Shanghai. The appropriate contractual agreements have been signed and the license to trade has already been issued. The 5,000 sq.-m. factory is scheduled for completion by the start of 2006. Delivery of the first postpress products is also expected to start at the beginning of 2006.

Heidelberg expects to see moderate growth in sales for the current financial year 2005/2006 on a comparable basis. At the beginning of the year, the high order backlog will provide a solid foundation for sales growth.

For more information, see heidelbergusa.com.

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