May 3 (Bloomberg) -- Heidelberger Druckmaschinen AG, the world's largest maker of printing equipment, said operating profit at its largest business, which sells machinery to the advertising industry, fell 53 percent as demand declined.

Full-year operating profit at the sheetfed unit fell to 132 million euros ($158 million) from 282 million euros, the Heidelberg, Germany-based company said in an e-mail. The company's three other units narrowed their operating losses.

Chief Executive Bernhard Schreier is cutting jobs and has shed the company's digital and newspaper printing businesses to focus on machines that print labels and menus. Heidelberger and other German printers have grown more optimistic about business in coming months as advertising spending recovers.

In the fourth quarter, which ended March 31, operating profit at the company as a whole more than doubled to 110 million euros from 54 million euros, Heidelberger said.

The company also said it completed the sale of its digital printing business to Eastman Kodak Co. on May 1.

To contact the reporter on this story: Peter Dinkloh in Frankfurt at pdinkloh@bloomberg.net

Last Updated: May 3, 2004 01:42 EDT