DGAP-Adhoc: Balda AG: Balda AG sees further growth

26.04.2006

Balda AG / Key word(s): Quarter Results

26.04.2006 07:46

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted

by DGAP – a company of EquityStory AG.

The issuer is solely responsible for the content of this announcement.

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Balda AG sees further growth

– Sales surplus of 14.7 percent

– Special effects from investments into the future adversely effect

the net income situation

– EBT with 6.4 million euro (previous year: 9.3 million euro) fully

according to budget

– Quarterly surplus of 4.0 million euro (previous year: 6.1 million

euro)

In the first quarter of 2006, the Balda Group increased its revenues by

14.7 percent to 92.7 million euro compared with the corresponding period

last year (previous year: 80.8 million euro).

Sales in the European manufacturing locations increased in the first

quarter by 14.1 percent to 61.8 million euro (previous year: 54.1 million

euro). In Asia proceeds jumped 28.0 percent to 28.0 million euro (previous

year: 21.8 million euro). In South America sales fell by 40.8 percent to

2.9 million euro (previous year: 4.9 million euro).

The operating result (EBIT) in the first quarter was 7.3 million euro

(previous year: 10.2 million euro) – a 28.7 percent drop. Results in the

first quarter nevertheless completely reflect expectations. While drafting

the budget, it became clear that the exceptional result of the

corresponding period last year was a one-off. In addition, special effects

have left their mark in the first quarter in 2006. The costs of the

full-scale expansion of the new Beijing location, which only had an effect

on the output of goods at the end of the quarter under review, and expenses

incurred for expanding tool-making operations in Suzhou, are investments

into the future. Furthermore, additional costs were incurred in Hungary. In

total these factors adversely affected the result to the tune of 1.9

million euro, and their effects had already been anticipated in the budget.

As was expected, the contribution to operating income of the European

locations fell to 3.8 million euro (previous year: 4.2 million euro). The

above-mentioned effects gave rise to a fall in profits to 3.2 million euro

for the companies in Asia (previous year: 5.4 million euro). The EBIT of

the plants in South America fell slightly to 0.3 million euro (previous

year: 0.6 million euro). The EBIT margin in the first quarter was 7.3

percent compared with 12.4 percent in the extraordinarily strong period

under review in 2005. Without the special effects, the Group would have

almost achieved a double-digit EBIT margin in the first quarter of 2006.

The pre-tax result was 6.4 million euro (previous year: 9.3 million euro).

The EBT margin was 6.5 percent (previous year: 11.2 percent). Without the

special effects, the EBT margin would have been 8.4 percent. The higher

share of the German locations in the pre-tax result gave rise to a tax rate

increase to 26.2 percent (previous year: 20.3 percent). This effect

influenced the quarterly surplus of 4.0 million euro, which fell by 34.7

percent (previous year: 6.1 million euro). On the basis of 40.16 million

shares (status as per 31 March 2005), the surplus gives rise to basic

earnings of 0.10 euro per share. In the previous year, the comparative

figure of 0.154 euro was calculated on the basis of 39.76 million shares.

The acquisition of the remaining 50-percent interest in Balda-Thong Fook

Solutions has not influenced the results of the first quarter.

Due to the net income for the period, the Balda Group further improved the

equity ratio in the period under review in absolute terms as well as in

relation to the balance sheet total to 49.9 percent (year-end 2005: 49.1

percent).

Balda plans to set up a manufacturing facility in Chennai, India, with the

production start in the middle of the year. It is envisaged that up to 10

million euro be made available for investments. The Board has confirmed the

projected sales growth for 2006 of about 15 percent to 450 to 460 million

euro. The pre-tax result (EBT) shall be in the region of 46 to 48 million

euro.

If you have any questions please contact us: Balda AG, Cersten Hellmich and

Kathrin Wiederrich (Investor Relations), Tel.: +49 (0)5734 9222706 /

9222751, Facsimile: +49 (0)5734 9222691, e-mail: chellmich@balda.de,

kwiederrich@balda.de, Internet: www.balda.de

If you have any questions please contact us: Balda AG, Cersten Hellmich and

Kathrin Wiederrich (Investor Relations), Tel.: +49 (0)5734 9222706 /

9222751, Facsimile: +49 (0)5734 9222691, e-mail: chellmich@balda.de,

kwiederrich@balda.de, Internet: www.balda.de

26.04.2006 DGAP’s Distribution Services include Regulatory Announcements,

Financial/Corporate News and Press Releases.

Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English

Company: Balda AG

Bergkirchener Str. 228

32549 Bad Oeynhausen

Germany

Phone: +49 (0) 57 34 / 9 22-0

Fax: +49 (0) 57 34 / 9 22-2604

E-mail: info@Balda.de

Internet: www.balda.de

ISIN: DE0005215107

WKN: 521510

Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr

in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart

End of Announcement DGAP News-Service

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