Heidelberg said it would lay off an additional 1,000 workers and possibly close some production facilities as a result of declining earnings and sales.

The press and postpress vendor, in its 2003 fiscal year financial report, said preliminary earnings dropped 72 percent, from $389 million U.S. to $111 million U.S., in the period ended March 31.

“We still find ourselves in a difficult economic climate,” said Bernhard Schreier, chief executive officer of Heidelberger Druckmaschinen AG. “Throughout the print media industry worldwide investors remain very resistant.”

Fiscal 2003 sales topped $4.5 billion U.S., in line with what the company expected.

But Heidelberg said it foresees a drop in revenues for the next 12 months, blaming the “continuing reticence” among key United States and German customers to invest in press and postpress production equipment.

Some bright spots did emerge in the United States. In April, The Columbus (Ohio) Dispatch placed an order for four Heidelberg Magnapak packaging systems to be installed over the next 12 months.

The first Magnapak will be installed in June; the final 16-station device will be installed next March.

“Advanced hopper design and the pocket designs are what attracted us to the Magnapak,” said Bill Kohl, The Dispatch’s director of operations.

Meantime, Heidelberg said it’s completed the first phase of a $31.6 million upgrade of The Roanoke (Va.) Times’ production facilities. A Magnapak system has been brought online and Heidelberg is now building the newspaper’s new press, a 48-couple gapless Mainstream scheduled to go on edition this fall.

Sales in other parts of the world have also increased. Revenues climbed almost 17 percent in Eastern Europe, to $350 million, the company said. Asia/Pacific sales also remained high, at almost $900 million.

Thanks in part to Eastern Europe and Pacific sales, Heidelberg said its digital and web divisions broke even during the fourth quarter.

But the company termed overall business in those divisions as “less than satisfactory.”

Heidelberg said gloomy prospects will force the company to continue its efforts to squeeze costs in a bid to improve earnings. Heidelberg said it hopes to save $80 million per year through the program, launched in October 2002.

Assuming Heidelberg cuts its workforce as anticipated, the company will have a little more than 23,000 employees worldwide, including the approximately 550 staffers it acquired from its purchase of Gallus Group and Idab Wamac International.