Heidelberger Druckmaschinen AG: Preliminary figures for FY’08

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-- Sales and operating result down on last year

-- Business hit by struggling global economy and strong euro

-- No market improvement on horizon for current financial year 2008/2009

-- First quarter 2008/2009: Sales are expected to be down on previous year's figure; operating result (EBIT) predicted to be negative

-- Management Board drawing up package of measures

-- Proposed dividend matches last year's EUR 0.95

Market conditions worsened considerably for Heidelberger Druckmaschinen AG financial year 2007/2008 (April 1, 2007 to March 31, 2008), with sales, operating result and net profit all down on the previous year's levels. "Poorer economic prospects have taken their toll over the past financial year, in particular during the second six months," stated Heidelberg CEO Bernhard Schreier. "This has led to a reluctance to invest in a number of regions," he added.

There is no market improvement on the horizon for the current financial year 2008/2009. With drupa - the hugely important trade show running from May 29 to June 11, 2008 - still to come, it is difficult to predict how sales for financial year 2008/2009 will develop. Consequently, Heidelberg will be publishing its sales forecast for the current financial year at the beginning of August with its figures for the first quarter.

However, it is already predictable that the sales for the first quarter of financial year 2008/2009 will be down on the previous year's figure, and that the operating result (EBIT) will be negative. Like the first quarter 2008/2009, the entire fiscal year will be affected by non-recurring expenditures for drupa, the start-up of series production for a number of new products and the strong euro. For these reasons, the operating result for the entire fiscal year 2008/2009 will be down on previous fiscal year's figure.

"After drupa but before the Annual General Meeting on July 18, we will announce appropriate measures to secure our leading market position and financial performance in the long term," stated Schreier. "Our aim is to improve our cost structures and lessen the effect of exchange rates in the medium term by internationalizing purchasing and production. We will also be stepping up our service and consumables operations to further reduce our dependency on economic cycles," he added.

Preliminary figures for financial year 2007/2008