Recovery in Asian markets boosts Heidelberg’s Q1 performance

The press manufacturer reported sales up 2.6% to Euros 544-m in the three months to 30 June, while adjusted EBITDA was Euros 18-m higher, at Euros 42-m, resulting in margins improving from 4.6% to 7.7%.

Although sales in Asia “grew strongly” trading in other markets was described as “rather muted”.

Incoming orders slipped to Euros 591-m from Euros 607-m, and the order backlog was down 9.5% at Euros 877-m.

Sales of packaging products jumped by 25%, including the new Boardmaster for high-volume carton printing, announced in May.

Heidelberg also highlighted market demand for the new Gallus One digital label printing press.

The absence of special items – such as asset sales – resulted in a negative free cash flow of Euros 27-m.

CFO Tania von der Goltz reiterated the importance of the group’s value creation programme, including strict cost discipline and making sure that increases in costs were offset by price increases.

(Source: PrintWeek.com)