Balda AG / Key word(s): Quarter Results
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.
* First quarter of 2007 shows continued operations in line with
* Continued operations with 63.1 million euros revenues, pre-tax
loss (EBT) 4.9 million euros
* Growth investment in Asia increases depreciation and interest
Bad Oeynhausen, 2 May 2007 – Balda AG developed as planned in the first
three months of 2007. The expectations for the full year remain unchanged,
revenues and in particular earnings are driven by the second half of the
year to a decisive degree. The Asian business of the globally operating
high-tech company is to be further stimulated in the coming months by new
orders and the burgeoning mass production of innovative touchscreen
solutions. From a long term stance Balda is already looking ahead at
products and technologies which could support the next growth stage.
Revenues and earnings
The strategic refocusing of Balda Group and the associated asset sales
resulted in extensive changes to the structure of the group. To provide a
basis for an appropriate comparison, figures for 2007 and 2006 respectively
centre on the development of the continued operations.
Consolidated revenues for the first three months of 2007 were, as with the
corresponding quarters in previous years, weak for seasonal reasons.
Revenues of the continued operations were 63.1 million euros. In the
corresponding quarter of the previous year the comparable revenues were
81.3 million euros (minus 22.4 per cent). This development is essentially
explained by the BenQ insolvency and the transfer of production to Asia by
leading mobile telephone manufacturers. With a total of some 55 per cent
Asia made the largest contribution to the revenues of the continued
operations, followed by Europe, whose share was around 40 per cent. America
contributed circa five per cent. India did not post any revenues in the
first three months of 2007.
The consolidated pre-tax loss (EBT) from the continued operations in the
first quarter of 2007 was 4.9 million euros (comparable pre-tax profit in
the first three months of 2006: 6.6 million euros). Accounting for tax
refunds and minorities the respective after tax loss amounted to 1.9
million euros (first quarter of 2006: 4.2 million euro profit). These
figures reflect the downturn in revenues in Europe and the planned increase
in depreciation on fixed assets through growth investment in Asia and the
respective financing costs. The discontinued operations also closed with an
after tax deficit of 1.9 million euros (deficit of the previous year: 0.2
Investment and cash flow
From January to March 2007 Balda invested 15.7 million euros in the
continued operations’ fixed assets (1st quarter 2006: 16.0 million euros).
The increase in the working capital in Asia, the declining operating income
as well as higher interest and tax payments lead to an operating cash flow
of the continued operations amounting to minus 16.9 million euros (first
quarter 2006: plus 6.6 million euros).
As of 31 March 2007 Balda employed a total of 7,648 staff in the continued
operations throughout the group. As of 31 March 2006 these areas had
employed a total workforce of 7,235. The change in the number of employees
reflects, among other things, the reduction of personnel in Europe and the
additional staff in Asia.
The guidance for the full year 2007 is confirmed: The consolidated revenues
will, from today’s stance, be 600 to 650 million euros; the sales volume in
terms of the number of units also remains unchanged. With the touchscreen
solutions in particular the system supplier Balda increasingly uses
purchased parts whose prices are currently falling. As such price decreases
are passed on to customers, the revenues could be lower than planned in
2007. However, the expected earnings would not be affected by this. A
pre-tax profit (EBT) of 50 to 55 million euros has been budgeted. This
leads to earnings per share (net) of more than 90 euro cents.
Key figures of the continued operations
Q1 2007 Q1 2006 Change
Revenues 63.083 m EUR 81.271 m EUR – 22.4%
Earnings before tax (EBT) – 4.860 m EUR 6.580 m EUR – 173.9%
Profit for the quarter – 1.912 m EUR 4.223 m EUR – 145.3%
Depreciation (fixed assets) 4.459 m EUR 3.654 m EUR 22.0%
Investment (fixed assets) 15.720 m EUR 15.960 m EUR – 1.5%
Cash flow – 16.922 m EUR 6.651 m EUR – 354.4%
Employees (as of 31 March) 7,648 7,235 5.7%
Capital stock (in shares) 47,387,088 40,162,958 17.6%
Key figures of the discontinued operations
Q1 2007 Q1 2006 Change
Revenues 3.284 m EUR 11.465 m EUR – 71.4%
Earnings before tax (EBT) – 1.931 m EUR – 0.137 m EUR – 1,309.5%
Profit for the quarter – 1.931 m EUR – 0.216 m EUR – 794.0%
Information and Explaination of the Issuer to this News:
This ad hoc announcement includes ‘forward-looking statements’ which are
based on the current expectations of the management of Balda. They are
subject to risks and uncertainty because they relate to 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 does not undertake any obligation to update publicly
or revise forward-looking statements except to the extent legally required.
This ad hoc announcement is not an offer of securities for sale or a
solicitation of an offer to purchase securities in the United States or
elsewhere. The shares in Balda AG (the ‘Shares’) may not be offered or sold
in the United States or to or for the account or benefit of U.S. persons
(as such term is defined in Regulation S under the U.S. Securities Act of
1933, as amended (the ‘Securities Act’)) unless registered under the
Securities Act or pursuant to an exemption from such registration. The
Shares have not been and will not be registered under the Securities Act.
If you have any questions please contact us: Balda AG, Cersten Hellmich /
Clas Röhl, Phone: + 49 (0) 1704460123/+ 49 (0) 16090941251, Email:
email@example.com, firstname.lastname@example.org, Internet: www.balda.de
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Company: Balda AG
Bergkirchener Str. 228
32549 Bad Oeynhausen
Phone: +49 (0) 57 34 / 9 22-0
Fax: +49 (0) 57 34 / 9 22-2604
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart
End of Announcement DGAP News-Service