Although RWEs operating profits rose 35% in the first half of 2003, its non-core businesses made an operating loss of 38m (e54m), mainly due to difficulties at Heidelberg.

A "substantial shortfall" at Heidelberg also hit RWEs sales and RWEs operating profit for the year is likely to be below last years level due to the "continued deterioration" of non-core businesses.

Although RWE had planned to divest its stake in the printing equipment manufacturer by December 2003, this is unlikely unless market conditions improve. Last month Heidelberg reported an operating loss of 42m in Q1 of its financial year.