Equipment

Heidelberg is looking to its packaging arm to grow the business as it reported a fall-off in sales for its preliminary results for the first quarter.

Heidelberg UK sales director Jim Todd said the company wanted to grow its packaging business "from where it is today to where we've got it in the commercial sector. That would represent a good growth in business for us".

In May, the firm demonstrated its commitment to the packaging industry by devoting a hall to large-format presses and finishing equipment at Drupa in Düsseldorf.

"We would not spend all that money if we were not serious about the packaging market," said Todd. "It was a great shop window for us and created a lot of interest from competitors' accounts."

Todd was speaking after the German press manufacturer reported first-quarter global sales of €640m-€660m (£510m-£525m), down from €742m in the same period in 2007. The company said this, coupled with higher costs, would produce a "negative quarterly result".

Heidelberg also revealed plans to cut 500 jobs as part of a cost-cutting exercise, which aims to save €100m by the 2010/2011 financial year.

Todd said that there were currently no plans to cut jobs in the UK.

Following the results announcement, Heidelberg chief executive Bernhard Schreier told the company's AGM that "many are looking at the business" as an acquisition target after its share price dropped by 50% over the past 12 months.
Schreier, who has previously denied a formal approach from US investor Warren Buffett, suggested that Russian investors may be interested.

First-quarter results
• Incoming orders for the first quarter after Drupa reached €1.1-€1.15bn
• Sales for the first quarter reached between €640-€660m compared to €742m the previous year
• Heidelberg intends to save around €100m by 2010/2011