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Operating performance more than doubled once again / Results in
full accordance with plans / Continued above-average growth potential
In the first nine months of the current business year (Sept. 30),
Balda AG increased its total operating performance to 108.4 million
euro, as against 43.6 million euro in the same period of 1999. This
represents an increase of 64.8 million euro, and a growth rate of 148
percent. As a systems supplier of mobile-phone equipment, the company
increased its pre-tax earnings in this period by a factor of almost
seven, from 1.8 million euro to 12.5 million euro. The adjusted net
operating margin (pre-tax earnings in comparison to total operating
performance) has thus more than trebled, from 4.1 percent to 13.5
percent. At the end of the third quarter, Balda's total operating
performance has exceeded targets, with earnings fully in accordance
with plans. Continuing dynamic growth in the mobile-phone market
gives Balda excellent opportunities and further potential for the
2001 business year.
In the third quarter itself, (July 1 to September 30), total
operating performance increased from 16.3 million euro to 56.3
million euro in comparison to the same period of 1999 - growth of 40
million euro at a factor of around two and a half. In comparison to
the second quarter of the present business year, Balda's total
operating performance again rose markedly, from 29.2 million euro to
56.3 million euro - an increase of 27.1 million euro or 93 percent.
Net earnings per share increased strongly at the end of the third
quarter of 2000, by 600 percent, from 0.029 cent to 0.2 cent. This
takes account of the capital increase of stock options (100,000
individual share certificates) carried out in the meantime and with
legal effect as of October 2. Net earnings per share are calculated
on the basis of 33.5 million shares. Earnings before interest, income
taxes, depreciations and amortizations (EBITDA) increased from 6.7
million euro to 21.9 million euro, a rise of 15.2 million euro or 225
percent. The operating result (EBIT) increased in even greater
measure, from 3.2 million euro to around 14.1 million euro, and thus
by 341 percent.
The dramatic increase in total operating performance in the third
quarter of this year is attributable in particular to two factors. On
the one hand, sales were increased by purchases of "margin-neutral"
electronic components, an item formerly not included in sales plans.
In the second instance, one-off, unplanned sales were derived from
the phasing-out of non- telecommunications activities in the course
of the takeover of Kendrion-Heinze. The total value of these
additional "margin- neutral" sales is 15.3 million euro.
As a result of these additional sales, and in expectation of a
further unplanned sales revenue of approximately 5.0 million euro
from electronic components in the fourth quarter of this year, the
company is increasing its total sales plans for the year 2000 to 153
With assembly of these electronic components, Balda has
strengthened and extended its portfolio as systems supplier to the
global market leaders in the mobile-phone industry. Integration of
Balda-Heinze (formerly Kendrion-Heinze), and expansion of the
company's own production capacities, are proceeding apace and on
schedule. The number of employees increased from 787 as of June 30 to
1,298 as of September 30 (593 one year previously).
According to the forecasts of leading market-research institutes
(Dataquest, Forrester), the worldwide sales market for mobile phones
will grow from its 1999 volume of 275 million units to between 1.3
and 1.4 billion units by the year 2004. Balda sees this extremely
dynamic development as a guarantee of continuing above-average growth
in its own business. In the estimation of the Board of Management,
introduction of the new UMTS technology in the year 2003 will also
play its part. Although the current development of business already
in part exceeds the targets set, and although orders received now
extend into the year 2002, Balda's Board of Management continues to
proceed with caution, and is not increasing the earnings target of
around 200 million euro for the year 2001. The annual round of
discussions with customers yet remains to be concluded.
Original-Content von: Balda Aktiengesellschaft, übermittelt durch news aktuell