In the three months to 30 June its sales fell 22.5% to 515m (eur720m), while incoming orders slumped by more than 30% to 545m. Ipex took place during the corresponding period last year.

Heidelberg made an operating loss of 42m, compared to a 15m profit this time last year, and a net loss of 55m (2002: 8.6m profit).

Chief executive Bernhard Schreier blamed the groups difficulties on weak demand in the US and Europe, particularly for sheetfed presses, although there had been the first signs of improvement in web offset and digital.

Incoming orders for sheetfed presses fell 35% to 393m amid tough competition from Japanese manufacturers benefiting from exchange rate fluctuation.

Heidelbergs postpress division suffered from sluggish demand and, according to chief financial officer Dr Herbert Meyer, its performance will only improve after the group has completed the consolidation of sites.

Only the Eastern Europe region came close to matching last years results, while China remained a growth market.