Sales fell 17% to 1.21bn (EUR1.9bn), incoming orders dropped 20% to 1.28bn, and net profit slumped 79% to 8.3m. Heidelbergs share price was at a 52-week low of EUR23.05 as PrintWeek went to press. The group had anticipated the shortfalls by announcing 2,200 job cuts as part of a 128m cost-cutting programme last month.

As part of the plan it will move all manufacturing of the NexPress to Rochester, US, from Kiel, and transfer platesetter assembly from Kiel to Wiesloch.

Chief executive Bernhard Schreier said Heidelberg was not anticipating an economic recovery this year, and [we] believe that even in 2003 the global economy will only begin to pick up speed again slowly.

Heidelberg will incorporate Gallus results into its financial year, after it gained a majority on the flexo press manufacturers advisory board. But it has not increased the 30% stake in Gallus it acquired in 1999.

Story by Gordon Carson