Heidelberg has high hopes for the presses it has launched this year, the Boardmaster flexo press for carton printing and the Gallus One inkjet label press. In the company’s interim results for the year, the press manufacturer says that currently its growth is in packaging and that both new presses, one launched at Interlock and the other at Labelexpo, have enjoyed a successful start and that there is a “solid project pipeline”.
Overall sales and new orders are relatively static. Sales for the first six months of the financial year (April-September) were €1.092 billion (€1.120 billion). New orders were likewise a fraction lower at €1.184 billion (€1.229 billion), running counter to figures from trade association the VDMA which has noted a growth in sales of German-made presses in the first eight months of the year and orders down 14%.
Heidelberg consequently says that it is “well on track” after the first six months of the year despite the “terse overall economic situation”.
Looking in more detail shows the importance of the packaging sector. Orders for the packaging division are up 16% with sales up 3%, while commercial division sales were down 6% and incoming orders 17% lower.
It means that packaging and printing have flipped positions compared to the first six months last year. In coming orders for the print solutions division slipped to €563 million from €682 million. In packaging solutions, incoming orders grew to €615 million compared to €531 million. Sales were €533 million (€566 million ) and for packaging €553 million (€538 million).
The second six months are not expected to change this position. The packaging division ought to continue to benefit from the introduction of the new presses. There have been installations of the Boardmaster in the US and Asia and “strong interest” in Europe. The Gallus One has likewise stirred strong interest. Heidelberg also notes the installation of the world’s largest Speedmaster XL106, a 20-unit press for WestRock for a site in Poland along with a 19-unit XL106 for a WestRock plant in Germany.
Commercial print sales are likely to slow in the run up to Drupa at the end of May next year. A new commercial press would provide a fillip to new orders, but there has been no announcement to this effect.
In terms of geographic change, the only region showing growth has been Asia-Pacific, though within the European area, Heidelberg UK has reported a 4% increase in sales.
There are still areas of concern. Free cashflow of €-28 million was down on the €-13 million at this point last year. CFO Tania von der Goltz comments: “The current free cashflow situation underlines the necessity to use further impetus from our value creation programme to generate resources for growth in segments such as the lucrative digital printing sector.”
Heidelberg has continued its relationship with Ricoh over its updated toner presses as the Versafire LV and LP. The question now is whether the relationship might expand to include Ricoh’s Z75 B2 inkjet press or whether Heidelberg intends to return to its own sheetfed inkjet programme.
