Sales at the press manufacturer, which is part-way through a major reshaping of its operations, fell 14% to €435m (£348m) in the three months to 30 June. Incoming orders fell 8.6% to €588m.
Equipment sales fell 16.7% to €224m, and services revenue was down 10.3% at €209m although that division’s share of group sales grew to 48%.
Heidelberg said the “muted” start to its financial year had been expected. The prior year had been boosted by China Print orders, and the previous quarter had involved a year-end rally in order intake.
Unfavourable exchange rates and a general reluctance to invest by its customers contributed to the reduction.
Yesterday rival German press manufacturer reported a 4.3% increase in sheetfed press sales in first-half trading.
Across its worldwide operations, Heidelberg also reported a “tangible slowdown” in business in the Asia/Pacific region this year and low levels of business in South America. In North America, orders were up 20% boosted by an increase in demand for larger-format presses. Orders from EMEA were up 3.6%, but not in the UK.
“The United Kingdom recorded a lower sales volume compared with unusually high sales in the same period of the previous year,” the company said.
The group pointed to its improvement in operating performance, where it returned a positive EBITDA figure for the period of €6m compared with the prior year’s €2m loss, as savings from its Focus efficiency programme flowed through.
The operating loss was down 45% to €11m, but the group’s pre-tax loss was still €28m (2013/14 loss: €33m) due in part to the costs associated with its bond issue.
Heidelberg’s share price fell by almost 6.5% in early trading before steadying at €2.28, a drop of 5.8%.
The group also agreed a new €20m amortising loan during the period as part of a move to diversify its credit lines. Net debt increased to €297m from €258m.
Chief financial officer Dirk Kaliebe said it had “placed our financing on a stable footing, which lays the financial foundation for restructuring the company.”
Costs associated with the Focus programme during the period were €12m.
Heidelberg employed 12,454 people worldwide at the period end, a reduction of 708 positions year-on-year.
As part of the Focus drive Heidelberg is removing low-margin products from its portfolio. Earlier this month it announced a radical shakeup of its post-press operations, including a cull of some product lines.
Separately, the capital increase related to its 100% takeover of Gallus, announced in June, will be officially registered this month.
It confirmed that Gallus owner Ferdinand Ruesch is receiving 23m Heidelberg shares of €2.70 each. This values the 70% stake being acquired at between €62.1m and €72.1m, as the deal also included a cash payment of not more than €10m.
The new hybrid inkjet label press that marries the Gallus platform with Fujifilm inkjet heads is expected to be shown in public for the first time next month.
Heidelberg expects sales to grow in the firm’s traditionally stronger second half, and despite the portfolio changes the firm anticipates remaining in the black for the full year, with sales forecast to be around the same as the 2013/2014 total of €2.4bn.
