Heidelberger Druck: Financial expert analyzes declining demand in the third quarter

Heidelberger Druck: Financial expert analyzes declining demand in the third quarter

According to a report by www.finanzen.net Heidelberger Druck experienced a decline in demand in the third quarter. The weaker market development requires countermeasures, and the company has introduced short-time work against the background of falling incoming orders.

The key figures were slightly below expectations, which led to a current share price loss of around 3.7 percent. The company expects short-time work savings in the low single-digit million range. The more difficult market situation is leading to a collapse in incoming orders, which can be reflected in the figures in around six months. The company hopes for an economic recovery and increasing demand through falling interest rates and the Drupa industry trade fair.

The company's sales remained almost stable in the first nine months of the financial year, although the operating result improved due to a savings program. Despite the decline in sales, the company aims to keep both sales and adjusted profit margin at approximately the same level as the previous year.

The significant cooling of investment demand in German mechanical and plant engineering as well as the reluctance of customers before the start of Drupa have led to a collapse in incoming orders. In order to become more profitable, the company has initiated a savings program that is intended to help generate positive cash inflows in the long term and make free cash flow positive.

After a profound crisis and realignment in recent years, Heidelberger Druckmaschinen is increasingly concentrating on packaging printing, digitalization and the sale of wallboxes for electric cars. Overall, the short-term development of the share was positive, but it has now changed direction again and has temporarily fallen by 3.76 percent to 1.03 euros.

This development shows that Heidelberger Druckmaschinen continues to face challenges in the market environment and that the company's long-term profitability depends on various factors, including a possible economic recovery and increased demand in the printing press market.