Binder+Co Aktiengesellschaft

EANS-Information of Significance: Binder+Co: New markets and customer segments penetrated as planned

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annual report

06.03.2014

Binder+Co: New markets and customer segments penetrated as planned 

-	2013 sales revenues 6.7% higher at EUR 93 million
-	2013 EBIT down on the preceding year, but solid at EUR 5.4 million
-	Packaging Technology raises its sales revenues by 84.3 %
-	New Chinese subsidiary assembles 23 screening machines in its first year of
operation  
-	New markets and customer segments penetrated  


Karl Grabner, from the Binder+Co Management Board: “For us, 2013 was
characterized by medium- and long-term group growth. And by growth we do not
simply mean becoming ever larger and achieving annual rises in all our key
indicators. Instead, for us growth also involves the targeted adaptation of our
structural basis in step with the opening up of new markets and customer
segments. Accordingly, against a background of solid, ongoing business
development, our focus was on capacity expansion through the start of operations
at our new location in China, the enlargement of the Gleisdorf plant and the
supplementation of our product portfolio. As a result, although market
conditions continued to be difficult, we were again able to tap into important
new branches and markets.    

An increasingly challenging market environment 

In 2013, the economic environment for Binder+Co’s mechanical engineering
business became steadily more difficult. The marked weakening in demand in the
EU resulted in a deterioration in result margins, which was particularly evident
in the system and plant area. From a Binder+Co perspective, as far as investment
decisions were concerned, the construction and construction supply industries
were extremely reticent and orders from the iron and steel industry during 2013
also failed to live up to expectations. Furthermore, while the recycling branch
demonstrated positive demand levels, competition in this segment intensified,
which led to increased pressure on prices.  

Successful penetration of new markets 


Nonetheless, in the course of the targeted expansion and spread of its
activities during 2013 Binder+Co was able to tap into interesting new markets
and customer segments. Successful entry into the Chinese coal mining industry
via screening technology products and an increase in Canadian orders for
potassium chloride (potash) drying plants provide clear evidence of the growth
potential in both sectors. The past year also showed a continuation of the very
strong demand in Asia for high-performance packaging technology products.   

Chinese subsidiary already very active in its first business year 

In January 2013, the fully owned subsidiary Binder+Co Machinery (Tianjin) Ltd.
received a business licence from the Chinese authorities and in May operations
commenced at the sales, production and services location in Wuqing. The first
business year closed with notable successes, 23 screening machines having been
assembled at the new plant and Binder+Co sales in China doubling as a
consequence. Initially, the Wuqing operation is to concentrate on the production
of screening machines for the Chinese coal mining industry. Subsequently,
activities in the Chinese recycling industry are to be stepped up gradually.

Further sales revenue growth, EBIT down on 2012

In spite of demanding conditions, in 2013 Binder+Co raised its sales volumes
over the previous year by 6.7% to EUR 93.04 million. A decisive factor in this
increase was the steady growth of single machine, services and spare part
business. By contrast, a revival in large-volume system and plant orders only
commenced in the final quarter of the year. EBIT for the period under report
remained solid at EUR 5.39 million, but was 35.9% down on the EUR 8.41 million
of the preceding year. In addition to strong competitive pressure in the markets
and branches served in Europe, this fall was due primarily to the anticipated
initial losses at the subsidiaries currently in the development phase. 

As the strongest segment in terms of sales revenues, Processing Technology
business in 2013 was characterized by systems orders, which were obtained under
price pressure and therefore contributed to a marked reduction in result
quality. In addition, the anticipated start-up losses at the Comec-Binder
S.r.l., Bublon GmbH and Binder+Co Machinery (Tianjin) Ltd. subsidiaries had a
negative effect on the segment result. Nevertheless, segment sales amounted to
EUR 38.6 million (2012: EUR 42.08 million) and thus constituted 41.5% of total
sales revenues. In spite of strong single machine business results, segment EBIT
was negative at EUR –2.01 million (2012: EUR 3.09 million). Total order intake
in the Processing Technology Segment stood at EUR 55.15 million in the period
under review and was therefore notably higher than the figure of the preceding
year (2012: EUR 42.12 million).

Demand for Environmental Technology Segment products during 2013 remained good,
but there was a sharp increase in competitive pressure. Consequently, although
numerous orders were again obtained in the single machine area, order intake was
well down on the EUR 28.26 million achieved in 2012 at EUR 17.89 million. With
sales of EUR 26.19 million (2012: EUR 29.75 million) the segment provided 28.1%
of total revenues. Solid single machine business ensured an EBIT contribution of
EUR 3.05 million (2012: EUR 3.52 million).

Following exceptionally high order intake in 2012, the Packaging Technology
know-how concentrated in the independent subsidiary Statec Binder GmbH again
provided solid order intake in 2013 with contracts worth a total of EUR 16.49
million (2012: EUR 28.15 million). Owing to the excellent order backlog at the
beginning of the year, segment sales revenues rose to EUR 28.25 million (2012:
EUR 15.33 million), while EBIT totalled EUR 4.35 million (2012: EUR 1.80
million) and thus represented a major contribution to total EBIT.   

Export business continues to be of major significance

Consolidated international sales during the period under review provided 92.2%
(2012: 91.1%) of total revenues, thus again confirming the primary importance of
export business. With a share of sales revenues of 41.7%, Western Europe
(excluding Austria) was again the largest sales market, followed by Asia and
Australia with 31.1%, the Americas with 8.6%, Central and Eastern Europe (CEE
and CIS) with 7.0% and Africa with 3.8%.

Demand remains low-key 

Thanks to an order backlog of EUR 40.16 million, Binder+Co started the 2013
financial year with a sizeable cushion. By contrast, order intake during the
first nine months of the year under report remained at a low level of around EUR
18 million per quarter. Only the fourth quarter stood out with EUR 35.45
million, indicating the dispersal of the investment backlog, which had developed
in the initial three quarters of 2013. All in all, order intake in 2013 amounted
to EUR 89.53 million, which was EUR 9.00 million or 9.1% lower than the value
for the preceding year (2012: EUR 98.53 million). As at December 31, 2013,
Binder+Co had secured an order backlog of EUR 36.59 million for 2014 and
subsequent years. 

Binder+Co share price development

During the period under review, the price of the Binder+Co share showed a marked
fall, although this followed considerable rises in past years. Starting from a
level of EUR 27.50 at the beginning of 2013, during the year the share price
fell by 22.2% before closing at a solid EUR 21.40. It was therefore still 214.0%
above the value of the initial quotation on December 27, 2006. 

Outlook 2014

In view of the fact that, from a Binder+Co perspective, a short-term recovery in
the EU cannot be expected, the intensification of overseas market activities,
which the company has been pursuing for a number of years, represents an
important measure for the securing of sustained, positive group development.
With an order backlog of EUR 36.59 million at the beginning of the year, in 2014
the company should be able to continue its growth course on the basis of a
secured position. 

The Binder+Co Group

Binder+Co is a specialist in the field of processing, environmental and
packaging technology and the world market leader in the screening and glass
recycling segments. The company was listed on the Vienna Stock Exchange at the
end of 2006 and is now part of the Third Market in the mid market segment. The
Binder+Co Group consists of Binder+Co AG, the three fully owned subsidiaries
Comec-Binder S.r.l., Bublon GmbH and Binder+Co Machinery (Tianjin) Ltd., as well
as the Statec Binder GmbH joint venture (50.7%). In 2010, Binder+Co was awarded
the Austrian National Innovation Prize for its successful implementation of
inventive capacity. Moreover, in 2011 it received both the Austrian National
Prize for Work Safety for its introduction of special safety measures for
apprentices, and the Best Open Innovator Award of the Zeppelin University
Friedrichshafen as the top SME in the D-A-CH region. In 2012, the company was
also presented with the TRIGOS Styria in the Ecology category for its efforts in
the resource conservation area.  


Further inquiry note:
Karl Grabner, Member of the Management Board
Phone: +43/3112/800-363 

end of announcement                               euro adhoc 
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issuer:      Binder+Co Aktiengesellschaft
             Grazerstraße  19-25
             A-8200 Gleisdorf
phone:       +43 3112 800-363
FAX:         +43 3112 800-320
mail:     karl.grabner@binder-co.at
WWW:      www.binder-co.com
sector:      Machine Manufacturing
ISIN:        AT000BINDER3
indexes:     mid market
stockmarkets: Third Market: Wien 
language:   English
 

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