The machine manufacturer Heidelberger Druckmaschinen increased its profit last year despite the difficult market situation and intends to maintain this level in the current financial year.

Turnover increased by twelve percent to 2.43 billion euros, also thanks to price increases, as the company announced on Wednesday. The adjusted operating return on sales rose by almost two percentage points to 7.2 percent. The important individual market of China is recovering from the weakness during the coronavirus crisis, explained CEO Ludwin Monz. However, costs continued to rise and the market environment remained challenging. The SDax group therefore expects turnover and earnings to remain at the previous year's level.

Monz announced a "value enhancement program" due to rising costs, low profitability and a recent shortfall in cash and cash equivalents of 72 million euros. He did not specify a sum or details of savings, which are still being examined. "The aim is to further increase the company's financial strength and increase investments in growth areas." In addition to its core business of printing presses, the Kurpfalz-based company wants to tap into new markets, as it has already done with wall boxes for charging electric cars. The focus is on business opportunities that fit in with the Group's fields of application of mechanical engineering, electronics and software as well as the brand. Acquisitions are also possible, said Monz. "That is definitely a lever, but it has to be financially feasible."

(Report by Ilona Wissenbach, edited by Myria Mildenberger. If you have any queries, please contact the editorial team at frankfurt.newsroom@thomsonreuters.com)