The German-based manufacturer has issued a profit warning saying that it expected a "significant downturn" in both sales and operating result for the current financial year, ending 31 March 2009, compared to the previous year.

It said the current financial crisis, coupled with movements in interest rates and its restructuring costs would lead to "a significant annual deficit in the current financial year".

Heidelberg, which posted a pre-tax loss of €50m in its first-quarter results, had previously announced plans to cut 500 jobs in order to save around €100m annually by 2010/2011.

However, in light of the fall in sales and earnings for both the current and the next financial year, Heidelberg has announced plans to more than double the anticipated €75m savings expected by 2009/2010 to between €150m to €180m.

Further measures in the 2010/2011 financial year will then boost total savings to €200m annually.

Heidelberg will implement a range of measures, beginning with shorter working hours in production, R&D and administration, in order to achieve its long-term goals.

The company, which has abandoned previously-announced plans to provide a quantitative forecast for its current financial year, said total restructuring costs could reach €150m.