Hardide Share News (HDD)

-- Agreement reached between management and employee representatives on job cuts and necessary adjustments to personnel capacities -- Planned savings on personnel costs based on agreement to forgo collectively agreed payments and company contributions, the company's option of drawing on additional working hours and an innovative working-time concept -- Cost reductions of EUR 80 million will be achieved according to plan in financial year 2011/2012 HEIDELBERG, Germany--(BUSINESS WIRE)--July 19, 2010-- The management and works council of Heidelberger Druckmaschinen AG (Heidelberg) (FWB:HDD) have agreed on a package of measures in a reconciliation of interests. The package comprises an agreement to forgo collectively agreed payments and company contributions, the company's option of drawing on additional working hours and an innovative working-time concept. One element of the agreement is that staff can voluntarily reduce their contractual working hours to 57 percent of the original level on a permanent basis, with a corresponding cut in pay. The company will provide compensation for part of the lost salary for a period of maximum four years. The working hours of staff adopting this employment model will be based on company needs. This concept is intended to reduce the number of compulsory redundancies still required. Taken as a whole, the package of measures is expected to cut around 500 jobs worldwide at Heidelberg until October 2010, around one third of these in the sales organizations. As part of this package voluntary and socially acceptable measures have already resulted in some staff leaving the company or concluding agreements to terminate their contract of employment. As planned, the company is thus implementing its package of cost-cutting measures, including saving of non-personnel cost. A key element of this package is to cut costs by an initial EUR 60 million in financial year 2010/2011 and a total of EUR 80 million in financial year 2011/2012. Together with the EUR 400 million of savings already achieved in financial year 2009/2010, this will result in total annual savings of EUR 480 million by financial year 2011/2012. "Following constructive talks, management and employee representatives have agreed on a Heidelberger Weg (Heidelberg Way) -- a strategy for adapting existing capacities to the order situation while still keeping as many staff and thus as much valuable know-how as possible at the company. We have also achieved our savings targets," said Heidelberg CEO Bernhard Schreier. "The package of measures now agreed marks a new departure for everyone involved in the negotiations and demonstrates a great sense of responsibility on all sides," he added. As of June 30, 2010, the Heidelberg Group had a workforce of 16,218 worldwide, thereof 10,942 in Germany. Important note: This press release contains forward-looking statements based on assumptions and estimations by the Management Board of Heidelberger Druckmaschinen Aktiengesellschaft. Even though the Management Board is of the opinion that those assumptions and estimations are realistic, the actual future development and results may deviate substantially from these forward-looking statements due to various factors, such as changes in the macro-economic situation, in the exchange rates, in the interest rates and in the print media industry. Heidelberger Druckmaschinen Aktiengesellschaft gives no warranty and does not assume liability for any damages in case the future development and the projected results do not correspond with the forward-looking statements contained in this press release. CONTACT: Heidelberger Druckmaschinen AG Corporate Public Relations Matthias Hartung Phone: +49 (0)6221 92 5077 Fax: +49 (0)6221 92 5069 E-mail: matthias.hartung@heidelberg.com www.heidelberg.com SOURCE: Heidelberger Druckmaschinen AG Copyright Business Wire 2010 (END) Dow Jones Newswires July 19, 2010 11:05 ET (15:05 GMT)