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Heidelberg starts financial year on uptick with China orders

Heidelberg announced a positive start to financial year 2021/22 (April 1, 2021 to March 31, 2022). The company reported a broad market recovery in virtually all regions and growing successes from the Group’s transformation strategy.

Orders from the successful trade show in China has led to incoming orders of €652 million, an increase of some 89% compared with the equivalent quarter of the previous year. Given the marked uptick in demand – especially for new products such as the Speedmaster CX 104 universal press – Heidelberg is expecting to continue building on the company’s market-leading position in China, the world’s number one growth market.

Due to market recovery, Heidelberg recorded sales of around €441 million for the first quarter of FY 2021/22, which was better than in the equivalent period of the previous year (€ 330 million). According to Heidelberg, incoming orders climb close to 90%, from €346 million to €652 million. This increased order backlog to €840 million.

“As demonstrated by our encouraging initial quarter of financial year 2021/22, Heidelberg is really delivering! Buoyed by the global economic recovery and the notable improvement in operating profitability, we are also very optimistic about meeting the targets announced for the year as a whole,” said Heidelberg CEO Rainer Hundsdörfer.

Based on solid economic development, Heidelberg is expecting the profitable upward trend to continue in subsequent years. This is down to the company’s implementation of realignment measures, the focus on its profitable core business, and the expansion of growth areas.

Cost savings of some € 140 million are predicted during financial year 2021/22 as a whole. Total savings exceeding € 170 million are then expected to take full effect in FY 2022/23, along with a lasting reduction in the Group’s operating break-even point, measured in terms of EBIT, to around € 1.9 billion.

The potential for sustained growth and increases in value is based primarily on opportunities in packaging printing, digital business models, business in China, and new technology applications.

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