(RTTNews) - Heidelberger Druckmaschinen AG (HBGRF.PK), a supplier to commercial, packaging and label printing companies, reported Tuesday that its second-quarter net loss was 13 million euros, compared to last year's profit of 14 million euros.
Operating result or EBIT excluding restructuring result was 18 million euros, down from 32 million euros last year.
Heidelberg achieved a positive EBITDA excluding restructuring result in the second quarter. EBITDA excluding restructuring result was 37 million euros, down from 55 million euros last year.
With the transformation program, Heidelberg has been able to more than compensate for the negative effect on earnings caused by a significant drop in sales due to the COVID-19 pandemic.
Net sales in the quarter declined 24 percent to 475 million euros from 622 million euros last year. Sales showed improvement compared to 34 percent drop in the first quarter.
Incoming orders dropped to 518 million euros from previous year's 648 million euros. The decline recorded in the second quarter was just under 20 percent, following a drop of 44 percent in the first quarter.
The company said it sees signs of recovery for sales and incoming orders.
There was a positive development in demand in a number of markets, above all in the key single market China, where, compared with the previous year, the level of incoming orders increased from around -50 percent in the first quarter to around -8 percent in the second.
Looking ahead, the company said it will reach its announced targets in the year as a whole and continue to achieve sustainably profitable growth in the years that follow. The outlook reflects the current demand trend and the planned additional steps to optimize its assets and portfolio and reduce staff costs.
Heidelberg continues to expect that the net result after taxes will be significantly better than in the previous year but still clearly in the negative range. The company still aims for an EBITDA margin excluding restructuring result that at least matches the previous year's figure.
Further, Heidelberg continues to anticipate that annual sales will be significantly lower than those of the previous year's 2.35 billion euros due to pressures brought about by the COVID-19 pandemic.
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