Heidelberg's new chief executive Gerold Linzbach said: "Development in the industry continues to be stable and demand for our products is robut. Based on the current financial year to date, we are confident we will meet our targets."
One of the main targets outlined at the start of the year was to achieve a "clearly positive" operating result excluding special items in 2012/13, rising to a €150m operating profit excluding special items in 2013/14.
Heidelberg declined to quantify what the company meant by "clearly positive"; however, the manufacturer faces an uphill struggle given the scale of its €57m first half loss, which has left it needing to more than double last year’s €24m second-half EBIT just to break even.
Company spokesman Thomas Fichtl said Heidelberg was confident it would reach its target through volume sales and cost savings. He also said the company expected higher volume sales this year as a result of Drupa.
While in the last Drupa year (2008/2009) Heidelberg only made €11.4m in the second half, Fichtl said it did not make sense to predict similar results this year. "That was the year the Lehman Brothers collapsed, the whole industry was affected. But the economy is largely stable now - there’s no reason to expect this year will be the same," he added.
Although Drupa was responsible for higher spending in the first half, Fichtl said it would result in "much higher" volume sales, 60% of which he expects during the second half.
The company's turnover in the second quarter was 9.6% higher than that of the previous year, rising from €636m in 2011/12 to €697m in 2012/13. Pre-tax loss increased 74% compared to the previous year, rising from a €19m loss to a €33m loss.
Heidelberg has committed itself to making savings of €180m by 2014 by increasing efficiency and reducing staff by 2,000. Fichtl said the company hoped to make a third of these savings this year, mainly in the second half.
