The world’s biggest press manufacturer announced the latest stage in its reorganisation today, along with a target to achieve EBITDA margins of at least 8% by its next financial year.
It also confirmed the €4m (£3.2m) net profit for the current financial year on sales of €2.4bn in its preliminary results, alongside more actions to “secure sustained profitability in the years ahead”.
As part of the shake-up instigated under chief executive Gerold Linzbach, who joined the group 18 months ago, Heidelberg also announced a plan to cut costs and consolidate its sites by relocating 500 administration staff and the main board from its Heidelberg HQ to its Wiesloch/Walldorf manufacturing site.
The move will result in the creation of one huge demo centre at the site for both packaging and commercial print.
It’s not clear whether this will mean Heidelberg vacating the landmark Print Media Academy building, which was opened in 2000 to mark the firm’s 150th anniversary.
Linzbach said the group had some non-core business lines or products in which it would no longer invest. “We will look for ways to make them more profitable and operate them primarily for cash,” he stated.
It could also "radically alter" manufacturing for some products.
The firm’s business unit for commercial finishing products is understood to be among the operations under review.
Linzbach said Heidelberg would pursue “concrete options” to either divest or acquire businesses, with discussions on a potential acquisition in the named growth areas of digital, consumables and services described as being “currently under way.”
The successful acquisition of HiTech Coatings in 2008 has resulted in speculation about a further purchase in the field of speciality chemistry or coatings.
However, its desire to grow its high-margin consumables business has also reignited speculation that Heidelberg, which at one time was linked with a possible bid for Agfa, could even acquire a plate manufacturer.
Its partnership with Fujifilm is also being expanded. In Scandinavia Heidelberg has taken over sales of Fujifilm’s plate products, and a new OEM deal will see Fujifilm market Heidelberg platesetters as an additional CTP option under its own brand in the future.
The platesetter deal is being reviewed by Fujifilm on a country-by-country basis and no decision has been taken in the UK as yet.
Linzbach also outlined a fresh focus on the group’s worldwide service offering, moving it beyond just equipment maintenance into additional services that anticipate customer needs.
“Service is already a billion-euro business for us. We think it has the potential for more growth and we will be investing more in this segment,” he said.
“The Heidelberg of the past was famous for the quality of its printing presses. And it’s our aim to maintain this engineering quality. But the Heidelberg of tomorrow will also be known for the quality of its service.”
Yesterday Heidelberg announced it was taking 100% ownership of label and packaging press specialist Gallus, in a deal that should be approved over the summer.
