Balda Aktiengesellschaft

EANS-Adhoc: Balda AG third quarter results: best quarter for sales in 2010 with negative EBIT and positive EBT

--------------------------------------------------------------------------------
  ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro
  adhoc with the aim of a Europe-wide distribution. The issuer is solely
  responsible for the content of this announcement.
-------------------------------------------------------------------------------- 

quarterly report

04.11.2010

Balda AG third quarter results: best quarter for sales in 2010 with negative EBIT and positive EBT

• Surplus for combined group at 6.9 million euros (previous year: 11.2 million euros) • Sales revenues at 108.6 million euros (previous year: 102.5 million euros) • 3rd quarter best for revenues at 45.2 million euros (previous year: 36.3 million euros) • EBIT at minus 3.6 million euros (previous year: plus 3.8 million euros) • EBT at 7.8 million euros (previous year: 8.8 million euros) • New plant in Beijing in operation • Samsung, Panasonic and Sanyo new MobileCom customers • Successful initial public offering of Balda's shareholding TPK • Downward adjustment of forecast for 2010

Bad Oeynhausen, 4 November 2010 - The Frankfurt SDax listed company Balda AG achieved sales revenue of 108.6 million euros (previous year: 102.5 million euros) in its continued operations in the first nine months of 2010. In the third quarter the Group generated its best quarterly result for sales in the 2010 financial year with revenues of 45.2 million euros (previous year: 36.3 million euros). Sales in the MobileCom division were below expectations.

Mixed results

The Group´s operative result (EBIT) fell to minus 3.6 million euros (previous year: plus 3.8 million euros). In the first nine months of 2010 the EBIT was affected by one-off expenditure of 3.0 million euros on the reorganisation and continued high pressure on margins in the MobileCom segment. In all divisions the EBIT was burdened by development activities for 2011 and cost-intensive start-up phases for the production of new products. The EBIT in the second quarter was minus 1.5 million euros after plus 1.3 million euros in the same period for the previous year.

The result of associated companies with earnings from the TPK shareholding was 14.3 million euros (previous year: 10.7 million euros). TPK Holding Ltd. successfully completed its initial public offering on 29 October with the issue of around 224 million shares. Its share price after the first day of trading was 505 Taiwanese dollars (around 12 euros). After the latest capital increase Balda´s stake in TPK is 16.1 percent.

With the profit contribution of TPK, the EBT after nine months of 2010 is positive at 7.8 million euros (previous year: 8.8 million euros). The combined group´s surplus after nine months (continued and discontinued operations) was 6.9 million euros (previous year: 11.2 million euros). The combined group´s earnings per share reached 13.0 eurocents after 21.5 eurocents in the same period for the previous year.

Development of the divisions

In the third quarter of 2010 the results achieved by the Balda Group´s three divisions were mixed. The sales volume in the MobileCom business area fell as compared to last year´s quarter. Order call-offs planned with customers did not occur in sufficient volume. The pressure on prices continued. This burdened the earnings situation. The EBIT came under additional pressure from the sales mix with a high share of low-margin bought-in electronic components and costintensive production start-ups.

The Electronic Products division significantly increased its sales revenue compared to the previous year as planned. The operative result in the third quarter was nearly break-even. In addition to the expensive production start- ups in the second quarter, expensive bought-in electronic components squeezed the margins in Malaysia as well.

The Medical division´s revenue and EBIT were as planned.

|In mio.  |Sales            |EBIT             |
|euros    |                 |                 |
|         |Nine    |Nine    |Nine    |Nine    |
|         |months  |months  |months  |months  |
|         |2010    |2009    |2010    |2009    |
|MobileCom|62.1    |66.5    |-5.6    |8.2     |
|Electro- |26.1    |11.9    |-2.6    |-1.6    |
|nic      |        |        |        |        |
|Products |        |        |        |        |
|Medical  |20.3    |24.1    |1.6     |3.5     |


Financial situation

As of 30 September 2010 the Balda  Group  had  liquid  assets  of  55.3  million
euros. Balda can finance its operational business from its own resources.

Equity increased

The Group's equity increased as of the  balance  sheet  date  to  180.4  million
euros (31 December 2009:  159.2  million  euros).  The  equity  ratio  was  63.3
percent at the end of  the  third  quarter  of  2010  (year-end  of  2009:  63.9
percent).

Outlook

The Balda Group is expecting sales in  the  MobileCom  division  in  the  fourth
quarter to remain at the same level of the third quarter or  possibly  to  fall.
It is expected that the EBIT in the MobileCom division will be reduced  further.
The Group does expect an improvement in 2011 with new customers. In addition to
Samsung, Panasonic and Sanyo are also among the new clients for 2011. The
state-of-the-art plant in Beijing  with  its  new  technologies  will  establish
 cost effective processes and thus strengthen the competitiveness.

The Electronic Products division will achieve its sales  target,  but  its  EBIT
will remain negative for 2010. For 2011 a break-even  result  is  expected.  The
Medical division will achieve its sales target and its expected  positive  EBIT.
In 2011 Medical will gain revenue in the low double-digit  percentage-range  and
also increase its EBIT.

On the basis of the final figures for the three-quarter period, the Balda Group
revises its last forecast for the 2010 financial year issued in October 2010.
The company is expecting sales revenue to be below the forecasted range and a
negative EBIT in the single-digit million-range. The EBT will be positive. This
forecast for the EBIT and EBT is valid unless extraordinary effects occur.

                                       ***

Table with key figures for the first nine months of 2010 

The Balda Group at a glance (continued operations) In mio. euros

|            |Nine   |Nine   |Change  |3rd    |2nd    |
|            |months |months |in      |quarter|quarter|
|            |2010 3 |2009 3 |percent |       |       |
|            |       |       |        |2010 3 |2010 3 |
|Sales       |108.5  |102.5  |6.0     |45.2   |37.4   |
|            |       |       |        |       |       |
|MobileCom   |62.1   |66.5   |- 6.6   |26.8   |21.1   |
|Medical     |20.3   |24.1   |- 15.8  |7.2    |6.9    |
|Electronic  |26.1   |11.9   |119.3   |11.2   |9.4    |
|Products    |       |       |        |       |       |
|Total output|122.5  |110.3  |11.1    |48.6   |45.2   |
|EBIT        |- 3.6  |3.8    |        |- 1.5  |0.2    |
|EBIT margin |- 2.9  |3.4    |        |- 3.2  |0.4    |
|(in %)      |       |       |        |       |       |
|Earnings    |7.8    |8.8    |- 11.4  |2.0    |3.7    |
|before tax  |       |       |        |       |       |
|(EBT)       |       |       |        |       |       |
|Earnings    |7.5    |9.1    |- 17.6  |1.8    |3.9    |
|continued   |       |       |        |       |       |
|operations  |       |       |        |       |       |
|Earnings per|14.2   |17.7   |- 19.8  |3.3    |7.4    |
|share (in   |       |       |        |       |       |
|cents) 1    |       |       |        |       |       |
|Number of   |2,951  |6,898  |- 57.2  |2,951  |3,731  |
|employees 2 |       |       |        |       |       |


1) Number shares as of the reporting date in millions 54.157 (previous year's
   reporting date: 54.157)
2) Number of employees including agency staff, trainees and temporary
   personnel - only continued operations
3) Including Balda Medical GmbH & Co. KG and Balda Grundstücks-Vermietungs
   GmbH & Co. KG





Company profile of Balda AG


The Balda Group develops and produces complete  plastic  assemblies,  electronic
products and products for the medical  technology  industry.  Balda´s  customers
are leading companies in the  mobile  phone,  consumer  electronics,  electronic
communications, pharmaceutical and medical  technology  markets.  The  Group  is
internationally  positioned  with  production  sites  in  China,  Malaysia   and
Germany. A subsidiary in the USA serves  North  American  customers  in  product
design and development. Within the  scope  of  its  shareholding  in  a  leading
touchscreen manufacturer  in  China,  Balda  is  participating  in  the  dynamic
development of the touchscreen displays market.


                                      * * *


Contact: Balda AG, Clas Röhl, Telephone: (05734) 922 - 2728, Fax: (05734) 922  -
2604, E-mail: croehl@balda.de, Internet: www.balda.de


                                      * * *


This ad-hoc announcement contains forward-looking statements which are based  on
the current expectations of Balda´s management. They therefore contain  a  range
of risks and uncertainties because they relate to future 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
will neither revise these forward-looking statements nor  correct  them  in  the
event of any unexpected development, unless there is a legal  obligation  to  do
so.


This ad-hoc announcement represents neither  an  offer  to  buy  shares  nor  an
invitation to submit an offer to buy shares in the United States  or  any  other
country. The shares in Balda AG (the "shares") may not be  offered  or  sold  in
the United States or to or for the  account  of  U.S.  persons  (as  defined  in
Regulation S of the U.S. Securities Act of 1933, in  its  current  version  (the
"Securities Act")), unless they are registered or are exempt  from  registration
under the Securities Act. The shares have not been and will  not  be  registered
under the Securities Act. 
end of announcement                               euro adhoc
-------------------------------------------------------------------------------- 

Further inquiry note:

Clas Röhl
Tel.: +49 (0) 5734 922-2728
croehl@balda.de

Branche: Semiconductors & active components
ISIN: DE0005215107
WKN: 521510
Index: CDAX, Prime All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
München / free trade

Original-Content von: Balda Aktiengesellschaft, übermittelt durch news aktuell

Weitere Meldungen: Balda Aktiengesellschaft

Das könnte Sie auch interessieren: