Binder+Co Aktiengesellschaft

EANS-Information of Significance: Binder+Co: Ongoing Difficult Market Environment

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quarterly report

14.05.2014

Gleisdorf, May 14, 2014
 
The first quarter of 2014 resulted in a perceptible decline in sales revenues
and earnings on the part of the Gleisdorf-based international specialist for
processing, environmental and packaging technology. The company had somewhat
more success in attracting new business, although demand was also restrained.
 
Generally the prevailing trends towards a perceptible dampening of demand and a
significant increase in competitive pressure which were already noticeable in
2013, especially in Europe, the domestic market of Binder+Co, continued in the
first quarter of 2014. Nevertheless, in the first three months of the year
Binder+Co succeeded in acquiring new orders to the amount of EUR 19.68 million,
thus slightly surpassing the level of EUR 19.37 million in the prior-year
period. The total order backlog as of March 31, 2014 was EUR 39.53 million, a
rise of 5.6% from the previous year (March 31, 2013: EUR 37.43 million).
However, this order volume includes a large-scale multi-year order totaling
about EUR 18 million which will not yet make any contribution to sales revenues
in 2014. For this reason and as a consequence of the retrained order intake in
the first quarter, sales revenues of the Group declined by 24.2% to EUR 16.73
million. EBIT reflected this development and was negative at minus EUR 0.74
million.
 
Karl Grabner,Member of the Management Board of Binder+Co:"In the first quarter
of 2014 we were still confronted with losses generated by the Chinese subsidiary
we first established last year as well as our Italian subsidiary. In addition,
the parent company has also been unable to make a positive earnings contribution
so far this year. This can be mainly attributed to orders we acquired in 2013 at
low margin levels as a consequence of the unfavorable market situation.
Accordingly, we are in the process of adjusting our own and leasing capacities
to reflect the lower sales revenues. With respect to new business, one positive
development is that we were contracted right at the beginning of the year to
supply another BUBLON facility. This is further evidence that this completely
new technology is beginning to establish itself on the market. As this shows,
top companies also consistently invest in innovation and further development of
their own products, even in economically turbulent times. Moreover, we succeeded
in penetrating interesting new markets and customer segments in 2013, such as
the coal mining sector in China orpotassium chloride (potash) processing in
Canada. This not only opens up new potential but enables us to reduce our
dependency on our domestic market of Europe."  
                                                                                
Segments: Decreases in sales revenues and earnings, but more orders for the most
part
The Processing TechnologySegment generated sales revenues of EUR 9.18 million in
the first three months of 2014, which was once again the largest though somewhat
reduced share of the Group's sales revenues. However, earnings were negatively
impacted by the above-mentioned losses in the young subsidiaries assigned to
this segment as well as the lack of a positive earnings contribution from the
parent company. In contrast, the order intake of the segment could be increased
by a solid 12%. The sales revenue contribution of the Environmental Technology
Segment focusing on sorting machines for glass, paper and plastics recycling
totaled EUR 4.04 million, a considerable drop from the comparable prior-year
figure. Segment earnings were also negative as a consequence of the decline in
sales revenues. First-quarter sales revenues of the independent subsidiary
Statec Binder GmbH, which coordinates the business of the Packaging Technology
Segment, decreased. Segment EBIT was also weaker, whereas the order intake of
the segment could be increased by about 25%.
 


Outlook

As previously mentioned, the order backlog of Binder+Co as at March 31, 2014 was
higher than in the previous year, but includes a large-scale multi-year contract
in the Processing Technology Segment valued at EUR 18 million which will not
make a contribution to sales revenues in the current financial year. The
management expects earnings margins to decline due to the difficult economic
conditions in Europe. Nevertheless, earnings in 2014 should remain at the
previous year's level due to the disproportionately high share of the business
with single machines.  
 


Slight reduction of the workforce

The increasing internationalization of Binder+Co led to an increase in the
number of employees of close to 9% to 370 as per the end of 2013, the highest
level to date. The workforce declined slightly to 367 as at March 31, 2014, and
should continue to decrease slightly in the upcoming quarterly periods.
 


Further investments at the Gleisdorf site



In the first quarter of 2014 Binder+Co invested a total of EUR 1.692 million.
The focus of this spending continued to be the construction of the new Group
headquarters at the Gleisdorf site.

 
The Binder+Co share - Share price maintained
The share price of the Binder+Co share traded on the mid market of the Vienna
Stock Exchange increased by 6.5% in the first quarter of 2014 from EUR 21.40 to
EUR 22.79. Most recently the Binder+Co share was traded at a price ranging
between EUR 22 and EUR 23.
 
 
 
 
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 andBinder+Co Machinery (Tianjin) Ltd., as well
asthe 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 theTRIGOS Styria in the Ecology category for its efforts in
the resource conservation area. 
 



Further inquiry note:
Karl Grabner, Member of the Management Board
Tel.: +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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