BERLIN (dpa-AFX) - Heidelberger Druckmaschinen AG (HBGRF.PK), a manufacturer of sheet fed offset printing machines for the print media, Thursday reported a narrower loss for the fourth quarter and full year ended March 31, reflecting strong growth in emerging markets. The Heidelberg, Germany-based company said a proposal will be put to the Annual General Meeting not to pay a dividend for the year.
Fourth-quarter net loss narrowed to 51 million euros from 71 million euros in the prior year. Net sales rose 4.3 percent to 746 million euros.
For the full financial year, the company's net loss narrowed to 129 million euros from 229 million euros in the previous year.
Operating activities including special items stood at 6 million euros, compared to a loss of 158 million last year. Operating result excluding special items were 4 million euros, as the company moved into the black after being in the red for two years.
Sales grew around 14 percent to 2.63 billion euros, as dynamic emerging markets, especially China and Brazil, led to strong growth in the print media industry. Incoming orders increased 16.3 percent to 2.76 billion euros with about 140 million of this increase coming from exchange rate movements.
Sales in Europe, Middle East and Africa increased 6.2 percent to 2.63 billion euros. Asia pacific sales were 856 million euros, up 28 percent from last year, while Latin America sales stood at 162 million euros, a growth of 43.4 percent.
Sales increased 19.3 percent in the equipment business, where orders were 24 percent higher. In the services business, sales and orders rose 8 percent and 6 percent, respectively.
The company's CEO Bernhard Schreier said, 'We achieved our targets in financial year 2010/2011 and Heidelberg is now back on a growth path...We will continue to systematically implement this successful strategy during the current financial year and gradually build up to our medium-term target of sales exceeding EUR 3 billion and a return on sales of more than 5 percent.'
For 2011/2012, the company targets break-even pre-tax result, provided macroeconomic developments remain stable.
The stock closed Wednesday at 2.70 euros, compared to the previous close of 2.71 euros, on 588,018 shares.
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© 2011 AFX News
