Heidelberg’s latest financial figures for its third quarter, ending 31 December 2015, show net profits after taxes of €7m, a distinct improvement over the same period the previous year, which saw a loss of €53m.
Heidelberg claims that the figures for the first nine months show that it is on course to realise sales growth of 2 to 4 percent after adjustment for exchange rate movements for the full financial year 2015/2016.
Group sales after nine months were 16 percent up to €1.802bn, though this figure benefits from positive exchange rates to the tune of €93m. Earnings before interest, taxes, depreciation and amortisation rose from €80m to €119m.
Heidelberg has attributed some of its success to its acquisition of the PSG Group last year. Equipment sales for the first nine months rose from €775m in the previous year to €932m, while Services rose from €772m to €866m. However, Heidelberg’s financial services, which are still mostly outsourced, fell from €5m to €4m.
Sales were well up in North America and Europe, while Eastern Europe and Latin America remained stable. But sales in China were affected by the slowdown in the Chinese economy, which particularly affected overall equipment sales.
Overall the figures seem to vindicate the company’s drastic cost cutting and reorganization, with CEO Gerold Linzbach noting: “Our new portfolio is more closely geared toward stable market segments, is more profitable, and creates the conditions for further growth.”
Heidelberg has said that it’s priorities will be further developing its digital business and continuing to expand the service business, which has already accounted for almost half of Group sales after nine months.