BERLIN (dpa-AFX) - Heidelberger Druckmaschinen AG (HBGRF.PK) expects sales for the 2020/2021 financial year to be significantly down on the prior year's 2.35 billion euros. The anticipated fall in sales due to the Covid-19 pandemic will also have a marked negative impact on the EBITDA margin due to lower volumes.
However, the company expects annual earnings to be improved by savings from the package of measures, accounting measures as well as temporary relief from more flexible working hours and short-time working.
The overall target is to deliver an EBITDA margin excluding restructuring result that is at least level with the prior year, despite the lower sales.
The company projects a significantly improved, but once again clearly negative result after taxes for financial year 2020/2021 compared to the previous year.
In the medium to long term, Heidelberg believes that the comprehensive package of measures will help to sustainably improve the company's future profitability and its financing power for future growth.
The company said it has already agreed with the works council on socially responsible solutions for the reduction of around 1,600 jobs worldwide.
The company said it confirmed its preliminary results for 2019/2020 financial year. Net loss after taxes for fiscal year was 343 million euros, compared to profit of 21 million euros last year.
Operating profit (EBITDA) excluding the effects of restructuring for the full year was 102 million euros, compared to 180 million euros in the previous year.
Consolidated sales were 2.35 billion euros, down around 6 percent on the previous year.
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