Incoming orders for the first six months of the year to September 30 were at €1.08 billion ($A1.74bn), compared with €1.9bn the previous year, although this was positively impacted by a strong showing at drupa 08.

The company’s order backlog was also down almost 50 per cent year-on-year, with the most significant drop – a decline of 55.4 per cent – reported for its post-press products.

The decline in sales resulted in a pre-tax loss of €74m ($A119m) for the quarter and a pre-tax loss of €139m ($A224m) for the first half of 2009, €122m ($A197m) of which was in its press division.

Sales in Asia were the strongest for the first half of the year, down 13 per cent from the first half of 2008. However, this was “not sufficient to fully compensate the downturns in the other regions”, said chief executive Bernhard Schreier (pictured).

Eastern European sales were the hardest hit, down 49.7 per cent year-on-year for the first half of 2009, reflecting the impact that the financial crisis has had on the region. EMEA sales were down 32.6 per cent.

Schreier said: “We can only expect to see an improvement in production values and capacity utilisation in the print industry when the economy as a whole shows signs of a lasting recovery which, in turn, will encourage a greater readiness to invest.”

The company has embarked on a significant cost-reduction programme, which has so far resulted in a reduction of 2,400 employees. At the end of the half year, the company had a workforce of 18,201. In total 4,000 will be made redundant as a result of the reorganisation.

In August, Heidelberg secured a new €1.4bn credit line with a loan and guarantee package from the German government.

Read the original article at www.printweek.com.

Comment below to have your say on this story.

If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.  

Sign up to the Sprinter newsletter