Heidelberg sees break-even in 2010-11 on cost cuts

FRANKFURT, April 22 (Reuters) - Heidelberg (HDDG.DE)(HDDG.DE), the world's largest printing-press maker, said it could turn a profit in the fiscal year that ends in March 2011 by cutting costs.

The company, which was rescued by a government loan last year, also said late on Thursday that its operating loss in the fiscal year that ended last month widened to 130 million euros ($175 million) before special items, worse than the 123 million euros expected by analysts based on Thomson Reuters I/B/E/S.

Citing preliminary figures, the group said full-year sales slid 23 percent to 2.31 billion, above the 2.2 billion euros predicted by analysts.

"Now the aim of our further cost-cutting measures introduced at the end of March is to achieve a break-even operating result for the next financial year (2010/11) assuming stable economic development." Chief Executive Bernhard Schreier said in a statement.

"The upward trend that was already apparent within the financial year as a whole continued in the fourth quarter," Heidelberg said.

Germany rescued the company last year with an emergency loan and guarantee worth over 800 million euros, preventing Heidelberg from going insolvent after it depleted 200 million euros in liquidity over the course of its last fiscal year.

A sharp slump in corporate advertising budgets means most of the family-run printing shops that comprise the core of Heidelberg's customer base cannot keep their machines running at full tilt and many are being forced out of business.

The group is due to release more detailed full-year figures on June 15. (Reporting by Ludwig Burger. Editing by Robert MacMillan)