Heidelberg 2nd quarter recovery led by China
Heidelberg announced its transformation program launched in March has successfully “strengthened” its position in the first half of the 2020/2021 financial year (1 April to 30 September 2020).
Heidelberg achieved a positive EBITDA excluding restructuring result in the second quarter of the current financial year, recording € 97 million in the first six months. This is a significant increase from the previous year, which recorded € 69 million.
In terms of sales and incoming orders, the gap compared to the previous year shrank in the second quarter of the current financial year. While sales after the first quarter were at –34 percent, this figure was only down 24% in the period from July to September; incoming orders, meanwhile, improved from –44% to –20%. At € 805 million, net sales in the first half of 2020/2021 were still approximately 28% below the level recorded for the same period in the previous year (€1,124 million).
In the second quarter, demand in important sales regions for Heidelberg, which had slumped over the previous months due to COVID-19, began to show initial signs of recovery. There was a positive development in demand in a number of markets, above all in the key single market China.
Incoming orders from China grew. According to Heidelberg, in some cases orders are once again being generated that are close to pre-crisis levels. The level of orders grew from around –50 percent in the first quarter to around –8 percent in the second.
“Our transformation is proving successful. We are delivering on our promise. By the end of the half-year, we had drastically reduced our debt and made significant improvements regarding our liquidity and results– despite the huge challenges our organization has faced owing to the COVID-19 pandemic. Besides enhancing our financial stability, we are strategically positioning ourselves to meet our customers’ needs with an innovative, needs-based product and service portfolio, with our aim being to further boost incoming orders and sales. We will continue to benefit from this when the markets recover, as demonstrated by China,” said Rainer Hundsdörfer, CEO of Heidelberg.