By Andrea Figueras
Shares in Heidelberger Druckmaschinen saw a rise on Friday as the German printing-technology company reported higher first-quarter profit and sales. The growth was mainly attributed to an economic recovery in Asia and increased demand in the packaging segment.
As of 0723 GMT, shares were up by 5% at EUR1.47.
Heidelberger Druckmaschinen witnessed a doubling of its aftertax profit to 10 million euros ($10.9 million) in the quarter ending June 30. This was in comparison to EUR5 million achieved in the same period last year. Additionally, net sales experienced a growth of 2.6%, reaching EUR544 million. Earnings before interest and taxes rose from EUR16 million to EUR23 million.
However, the company noted a decrease in incoming orders, which went down from EUR607 million to EUR591 million. This decline was due to subdued demand across all regions, except for Asia.
On a positive note, orders in the packaging-solutions segment increased by approximately 25%. Heidelberg's strong position in the printing market helped mitigate the impact of slow growth in other areas, according to Chief Executive Ludwin Monz.
Heidelberger Druckmaschinen has reaffirmed its outlook for fiscal 2024. The company expects sales to be in line with fiscal 2023, while the adjusted earnings before interest, taxes, depreciation, and amortization margin is anticipated to remain stable at 7.2%.
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