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UPDATE 1-Heidelberger CEO says orders still on the rise

Published 09/13/2010, 05:23 AM
Updated 09/13/2010, 05:28 AM

* CEO says positive trend has continued in recent weeks

* Says is in no talks about tie-ups with peers

* Aims to raise capital to slash debt and support recovery

* Shares down 3.3 percent

(Adds details, background)

STUTTGART, GERMANY, Sept 13 (Reuters) - Printing press maker Heidelberger Druck is still benefiting from strong orders for its machines, its chief executive said, underpinning its plans to boost equity capital and to remain independent.

"The positive trend in incoming orders has continued in recent weeks," CEO Bernhard Schreier said on a conference call on Monday, a day after slating the start of subscriptions for its 420 million euro ($537.3 million) rights issue for Tuesday.

The world's top supplier of printing presses said last month its order backlog at the end of June was more than 30 percent higher than a year earlier.

The company was rescued by a government loan last year, having suffered a massive slump in demand for its machines, and came under pressure from key shareholder Allianz to join a sector consolidation drive.

But suitor manroland, the world's second largest manufacturer, abandoned merger plans after losses at Heidelberger unexpectedly ballooned.

The company said on Sunday one new share would be offered at 2.70 euros each for every two shares held by existing investors and proceeds would serve to slash debt.

Schreier said on Monday the company was in no talks on a potential consolidation in the industry.

Shares in Heidelberger Druck were down 3.3 percent at 6.0 euros at 0828 GMT while Germany's midcap index rose 0.7 percent. (Reporting by Hendrik Sackmann; Writing by Ludwig Burger; Editing by David Holmes)

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