Financial Year 2006/2007: Heidelberg Presents Nine-Month Figures

    --  Incoming orders for third quarter 7 percent up on previous year

    --  Sales around 6 percent up at EUR 2.589 billion

    --  Operating result up to EUR 202 million

    --  Outlook for full financial year 2006/2007 unchanged

    HEIDELBERG, GERMANY, January 31 /CNW/ - In the first nine months of
financial year 2006/2007 (April 1, 2006 to December 31, 2006), Heidelberger
Druckmaschinen AG (Heidelberg) (FWB: HDD) returned figures for sales, incoming
orders and operating result that were up over the previous year. Sales by the
Heidelberg Group during the period under review climbed around 6 percent to
EUR 2.589 billion (previous year: EUR 2.437 billion). Incoming orders after
nine months amounted to EUR 2.913 billion, around 7 percent up on the same
period of the previous year (EUR 2.725 billion). The order backlog of EUR
1.280 billion at December 31, 2006 was once again on a very high level.

    "The favorable development in the print media industry has continued
thanks to the positive trend in the economy as a whole in 2006," stated
Heidelberg CEO Bernhard Schreier. "Capacity utilization and production
activity in printshops both increased in the two key markets Germany and the

    The Heidelberg Group recorded an operating result of EUR 202 million in
the period under review (previous year: EUR 144 million). This corresponds to
a return on sales of 7.8 percent. The net profit after nine months - including
a positive non-recurring effect resulting from a corporate income tax credit
in the third quarter of EUR 73 million - was EUR 180 million (previous year:
EUR 65 million). Earnings per share after nine months were EUR 2.21 (previous
year: EUR 0.76), of which EUR 0.89 were attributable to the additional tax

    "We were able to make further progress towards increasing our
productivity in both the third quarter and the nine months as a whole," stated
Heidelberg CFO Dirk Kaliebe. "We are also making use of the resulting improved
cash flow to implement the share buyback program."

    As of December 31, 2006, the Heidelberg Group had a workforce of 19,156
worldwide (previous year: 18,700). This represents an increase of around 400
since the end of the last financial year.

    Nine-month sales and results show improvement in the divisions

    In the Press Division (offset printing), sales rose to EUR 2.251 billion
in the first nine months (previous year: EUR 2.130 billion). Incoming orders
in the period under review amounted to EUR 2.551 billion (previous year: EUR
2.395 billion). The operating result after the first three quarters amounted
to EUR 157 million (previous year: EUR 121 million). The positive business
development within the press division was also affected by the considerably
high demand for the large format, especially for the Speedmaster XL 105. In
the current fiscal year Heidelberg is particularly investing in new
technologies as there are Anicolor and a new generation of sheetfed printing
presses of a larger format (Speedmaster XL 142/162).

    In the Postpress Division (finishing), sales amounted to EUR 309 million,
14 percent up on the figure 12 months ago (previous year: EUR 271 million).
Incoming orders rose by around 13 percent to EUR 333 million (previous year:
EUR 294 million). The operating result for the period under review amounted to
EUR 7 million (previous year: EUR 2 million).

    Sales and incoming orders in the EMEA, North America, Latin America and
Eastern Europe regions in the first nine months exceeded the comparable
figures for the previous year. In the Asia/Pacific region, figures fell short
of the high levels of the previous year. Primarily the suspension of the
import duty exemption in China in the second and third quarter slowed down
incoming orders and sales. The restoration of the import duty exemption on
March 1, 2007 suggests that the expected improvement in the order and supply
situation for the Chinese market will be deferred to the new financial year.

    Share buyback

    On November 7, 2006, Heidelberger Druckmaschinen AG launched a second
share buyback program: A total of up to 5 percent of the company's capital
stock - a maximum of 4,152,535 shares - is to be repurchased on the stock
market by January 2008 at the latest. At the end of the quarter, on December
31, 2006, the company had bought back 909,422 shares, equivalent to 1.1
percent of the share capital.

    Outlook for financial year 2006/2007 unchanged

    For financial year 2006/2007, the company anticipates that sales will be
approximately 5 percent up on financial year 2005/2006. Heidelberg plans to
increase its operating result to approximately 10 percent of sales during the
current financial year.

    The complete report for the third quarter of 2006/2007 will be available
online at

    The tables showing the figures as well as further information can be
downloaded from the Press Lounge at

    Other dates:

    The scheduled publication date for the preliminary figures for financial
year 2006/2007 is May 9, 2007.

For further information:

For further information: Heidelberger Druckmaschinen AG Corporate
Communications Thomas Fichtl, +49 6221 92 4747 Fax: +49 6221 92 5069

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