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quarterly report/3-month report
Bad Oeynhausen (euro adhoc) - Balda AG: As expected, sluggish start in the first quarter of 2010
Sales revenues at 27.5 million euros in the first quarter of 2010 (period
of previous year: 35.5 million euros)
Strong pricing pressure in the MobileCom business puts a strain on sales
and result situation
EBIT amounting to minus 2.4 million euros stays within the budgeted scope
(period of previous year: plus 2.5 million euros)
Quarterly profit of 1.6 million euros (previous year: 2.3 million euros)
New products on the verge of being launched
Forecast for 2010 confirmed: two-digit rise in sales of 10 to 15 percent
with an EBIT remaining constant
Bad Oeynhausen, 6 May 2010 - Balda AG, listed on the SDax of the Frankfurt
Stock Exchange, achieved sales revenues amounting to 27.5 million euros in its continued operations in the first quarter of 2010, compared to 35.5 million euros in the period of the previous year. The strong pricing pressure prevailing in the MobileCom business as well as delayed commencements of production were the pivotal causes for the decline by 8.0 million euros, or 22.5 percent. The sales revenues are within the company´s planning for the first quarter of 2010.
Heterogeneous development of the segments The segment China achieved sales revenues amounting to 14.2 million euros in the reporting period, compared to 21.9 million euros in the previous year. The drop by 7.5 million euros, or 34.3 percent, is essentially due to two reasons. For one, a customer postponed projects until the second half of the year; secondly, the pricing pressure has considerably increased in the MobileCom segment owing to the intense competition. To be well prepared for the future demands of customers, Balda continued to invest in the expansion of the Beijing production location during the first quarter. With the completion of the first construction phase of the new plant as of the middle of the year, the segment China still expects a two-digit growth. The serial production of two new mobile telephones has begun in March. Given the fact that fixed costs stayed almost the same, the operative result (EBIT) slackened by 3.8 million euros and reached a barely positive result in the first quarter of 2010.
The Malaysian segment closed the first quarter of 2010 with a plus in sales revenues of 0.5 million euros, or 10 percent, at 5.5 million euros (previous year: 5.0 million euros). The company was able to gain new customers and projects. The production of four innovative electronic products for brand customers selling mobile phone accessories worldwide commenced at the turn of the year. This includes the "portable media player," a "tablet format" device that is controlled by touch screen. The EBIT of Balda Malaysia stood at minus 1.7 million euros in the first three months of 2010. Expensive components that have to be purchased led to higher material usage ratios in the reporting period. The Malaysia segment is likely to reach the break-even point in the second quarter of 2010 already.
In the first quarter of the ongoing financial year Balda India registered sales revenues amounting to 1.5 million euros (previous year: 0.9 million euros). The EBIT of the subsidiary on the subcontinent added up to minus 0.2 million euros (first quarter 2009: minus 0.4 million euros).
The Germany segment, with Balda Medical, achieved sales revenues amounting to 6.2 million euros in the first quarter of 2010 (previous year: 7.6 million euros). The ongoing financial year is characterised, among other things, by design and engineering work for substantial projects that will boost turnover only in 2011. Despite the decline in sales and the low-margin advance activities for future projects, Balda Medical achieved a positive EBIT amounting to 0.4 million euros (previous year: 1.0 million euros).
Operational result slides into the red Given the fact that expenditures were at the same level as they were in the previous year, the decline in sales for the segments of Balda Group was clearly reflected in the operational result in the first three months of the ongoing financial year. The company recorded an EBIT of minus 2.4 million euros in its continued operations (previous year: plus 2.5 million euros) and moved within the scope that had been budgeted. The financial result of the Group was reduced to minus 1.0 million euros in the first quarter of 2010 (previous year: minus 2.1 million euros). The net interest income in the first three months of 2010 stood at 1.1 million euros below the value of the previous year. The earnings from associated companies, amounting to 5.3 million euros, also encompass, alongside the profit share from the operational result, the book profits from the disposal of the additional 1.625 percent of TPK shares, amounting to 4.5 million euros.
Positive EBT and quarterly profit The EBT of the continued operations were listed at 1.9 million euros in the first quarter 2010. The EBT added up to 3.0 million euros in the previous year.
Balda Group wound up the first quarter of 2010 in the continued operations with a quarterly surplus of 1.6 million euros (period of the previous year: 2.3 million euros). The Group´s discontinued operations achieved a slightly negative quarterly result amounting to 0.1 million euros, following plus 2.5 million euros in the previous year.
Altogether, the specialist for mobile telephone equipment, electronic products and medical technology posted a quarterly profit of 1.5 million euros in the first three months of the ongoing financial year (period of the previous year: 4.8 million euros).
Equity has increased The Balda Group´s equity has risen from 159.2 million euros as of 31 December 2009 to 173.3 million euros as of the closing date of the reporting period. The high equity ratio stood at 65.1 percent as of the close of the reporting period (previous year: 63.6 percent). The cash and cash equivalents improved to 49.2 million euros (31 December 2009: 44.2 million euros). The company has comfortable funding at its disposal.
Despite the subdued business growth in the first quarter of 2010, the company still expects a rise in the Group´s sales of 10 to 15 percent with an EBIT remaining constant for the ongoing financial year, compared to 2009.
* * *
Key Figures Balda Group Q1 2010 / Q1 2009 (Continued operations)
in million euros
| |Q1 / 2010 |Q1 / 2009 |Change in |
| | |(3) |percent |
| | | | |
|Revenues |27.5 |35.5 |-22.5 |
| |China |14.2 |21.9 |-35.2 |
| |Malaysia |5.5 |5.0 |10.0 |
| |India |1.5 |0.9 |66.7 |
| |Germany |6.2 |7.6 |-18.4 |
|Total operating|30.3 |37.6 |-19.4 |
|performance | | | |
|EBITDA |0.4 |6.0 |-93.3 |
|Operational |-2.4 |2.5 |-196 |
|result (EBIT) | | | |
|EBIT margin (in|-8.1 |6.7 | |
|%) | | | |
|Earnings before|1.9 |3.0 |-36.7 |
|taxes (EBT) | | | |
|Quarterly |1.6 |2.3 |-30.4 |
|result | | | |
|Quarterly |1.5 |4.8 |-68.8 |
|result | | | |
|including | | | |
|discontinued | | | |
|operations | | | |
|Earnings per |3.0 |9.2 |-67.4 |
|share (in | | | |
|eurocent) (1) | | | |
|Employees (2) |5,346 |5,032 |6.2 |
(1) Number of shares at the cut-off date in million 54.157 (at cut-off date of
the previous year: 54,157)
(2) Number of employees including agency workers, trainees and temporary
workers - continued operations
(3) Including Balda Medical GmbH & Co. KG and Balda
* * *
Company Profile Balda AG
The Balda Group develops and produces complete plastic assemblies, electronic
products and products for the medical industry. The customers of Balda are
leaders in business from the mobile, entertainment and electronic
communications as well as pharmaceutical and medical technology markets.
The Group has an international position with product sites in China, Malaysia,
India and Germany. A subsidiary in the United States serves North American
customers in product design and development. As part of a shareholding in a
leading manufacturer of touch screens in China, Balda participates in the
dynamic touch screen displays market.
* * *
This corporate news announcement includes "forward-looking statements" which
are based on the current expectations of the management of Balda. They are
subject to risks and uncertainty because they relate to events and depend on
circumstances that will occur in the future, such as, for example, developments
in the mobile communications industry, changes in technology and the ability to
timely and successfully develop new products and various other factors. Balda
does not undertake any obligation to update publicly or revise forward-looking
statements except to the extent legally required.
This corporate news announcement is not an offer of securities for sale or a
solicitation of an offer to purchase securities in the United States or
elsewhere. The shares in Balda AG (the "Shares") may not be offered or sold in
the United States or to or for the account or benefit of U.S. persons (as such
term is defined in Regulation S under the U.S. Securities Act of 1933, as
amended (the "Securities Act") unless registered under the Securities Act or
pursuant to an exemption from such registration. The Shares have not been and
will not be registered under the Securities Act.
end of announcement euro adhoc
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