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.
Balda successful with the continued operations in Q3 2007
– Successful ramp-up of mass production for a further touch-based
project at TPK
– Construction of an extension building for the Touch-production
will commence in Q4
– 172.3 million euros in revenues as of 30.9. (+ 61.3 percent),
previous year: 106.8 million euros
– 9.8 million euros operating result (EBIT) as of 30.9. (previous
year: minus 7.0 million euros)
– Revenues in Q3 rose by 124.2 percent (78.3 million euros following
on from 34.9 million euros in Q3 2006)
– Operating result (EBIT) positive in the third quarter at 2.1 million
euros (Q3 2006: minus 14.0 million euros)
Bad Oeynhausen, October 31, 2007. Sales and earnings for the continued
operations of the global high-tech company Balda in the third quarter
of 2007 were in line with expectations.
At Balda Medical sales continued to develop much better than planned.
Together with the Infocom business and the Touch technology segment,
which is likely to be the most important pillar of future growth, the
revenues of the continued operations rose by 61.3 percent in the first
nine months of 2007 to a total of 172.3 million euros. In the same pe-
riod of the previous year the sales were 106.8 million euros. In the
third quarter of 2007 alone the sales increased by 124.2 percent to 78.3
million euros (third quarter 2006: 34.9 million euros).
The first nine months of 2007 were concluded by the continued operations
as planned with a positive operating result (EBIT). The EBIT rose to 9.8
million euros, following on from minus 7.0 million euros in the compar-
able period of the previous year. In Q3 the EBIT was 2.1 million euros
(third quarter 2006: minus 14.0 million euros).
At TPK the mass production of a further project for a major customer
successfully started in the third quarter. Here the customer assembles
the LCD display, Balda provides the sensor. For this reason with the
same number of pieces the revenues are lower relative to products where
the company supplies the entire module comprising sensor and display.
The development of the continued operations is still very promising.
The new major order for a renowned mobile telephone manufacturer that
has already been announced and potential new projects are confirmation
of the expected trend towards further market growth in the field of
touch-sensitive displays. The traditional core business Infocom has also
picked up considerably in Asia, and will, from present stance, see good
capacity utilization in the coming year.
Against this background the construction of an extension building for
the Touch-production will commence in Q4 already. As Balda leases these
plants for the long term, the expansion will not lead to any charges in
In order to compare the figures for 2007 with the corresponding figures
for the previous year, all details refer to the continued operations.
Revenues and earnings
The total revenues at the Balda Group in the first nine months of 2007
increased by 61.3 percent to 172.3 million euros (January to September
2006: 106.8 million euros). In the third quarter of 2007 the sales were
78.3 million euros, in the corresponding period of the previous year
the figure had been 34.9 million euros (+ 124.2 percent). This develop-
ment is express confirmation of the successful re-orientation of the
The operating result (EBIT) as of the end of September 2007 was 9.8
million euros – following on from minus 7.0 million euros in the com-
parable period of the previous year – and was, as planned, positive.
In Q3 2007 the EBIT was 2.1 million euros (third quarter 2006: minus
14.0 million euros).
The earnings before tax (EBT) of the continued operations as of the end
of September 2007 were 2.2 million euros, and thus much better than in
the corresponding period in the previous year (minus 9.9 million euros).
In the third quarter of 2007 the EBT were minus 0.5 million euros, and
thus practically balanced. In the previous year the EBT in Q3 were minus
15.5 million euros.
Investments and cash flow
The investments in fixed and in intangible assets from January to Septem-
ber 2007 were 38.0 million euros (in the corresponding period of the pre-
vious year 24.6 million euros). In the third quarter of 2007 they were
6.0 million euros (Q3 2006: 13.3 million euros).
Despite the increase in the current assets in Asia, the positive operat-
ing result in the first nine months of 2007 led to a positive operating
cash flow of 1.0 million euros (January to September 2006 minus 3.6 mil-
As of 30 September 2007 the Balda Group employed a total of 7,518
employees. In a comparison with 31 December 2006 (6,131 employees)
the workforce has increased by 22.6 percent. The rise primarily re-
sults from the personnel growth in the heavily expanding Touch seg-
ment and mainly took place in the first six months of the year. At
the end of June 2007 Balda had 7,306 employees.
The development of the discontinued operations comprising the European
Infocom segment, for which sales talks with a number of potential buyers
are conducted, is expected to be weak for the rest of 2007.
Balda Medical continues to develop better than planned and will prob-
ably clearly surpass the sales revenues of 25.0 million euros budgeted
for 2007. For the full 2007 fiscal year it is expected that the contin-
ued operations as a whole will post a further rise in revenues and a
positive pre-tax result. The positive growth expectations for 2008 are
* * *
Key ratios of the continued operations
Q3 2007 Q3 2006 Change 30.9.2- 30.9.2- Change
Revenues 78.3 m EUR 34.9 m EUR – 172.3 m 106.8 m EUR +61.3
Operating result 2.1 m EUR -14.0 m EUR – 9.8 m EUR -7.0 m EUR –
Earnings before -0.5 m EUR -15.5 m EUR – 2.2 m EUR -9.9 m EUR –
Depreciation 6.2 m EUR 12.9 m EUR -51.9 13.2 m EUR 15.9 m EUR -17.0
Investment (fixed 6.0 m EUR 13.3 m EUR -54.9 38.0 m EUR 24.6 m EUR +54.5
assets) % %
Employees (as of – – – 7,518 5,424 +38.6
Capital stock(in 47,387, 40,279, +17.6 47,387, 40,279, +17.6
shares) 088 958 % 088 958 %
* * *
Company profile Balda AG
The internationally operating Balda Group develops and produces highly
integrated devices comprising plastic, metal and electronic components
as well as touch sensors. Among the customers of the SDAX listed company
are international brand-names from the mobile telephony industry, medical
technology and various related markets.
The integration of plastic and touch screen technologies creates comple-
tely new customer benefits. Only Balda currently offers both technologies
from one source on a global scale. The group has a strong position in the
important growth markets China and India and owns four production faci-
lities in the region. Plants in Brazil and in Malaysia, as well as the
facility in Germany for Balda Medical, underline the global competitive-
ness of the group of companies.
* * *
On Wednesday, October 31, 2007, a conference call in German language
will be held at 9:30 am (CET) for journalists.
Please dial in approximately 10 minutes prior to the start of the
conference, dial in number: + 49 69 22 22 22 44.
At 11.00 am (CET) on the same day an English language conference call
will be held for investors and analysts.
Please dial in approximately 10 minutes prior to the start of the
conference, dial in number + 49 69 22 22 22 42.
* * *
If you have any questions please contact: Balda AG, Clas Röhl, Phone:
+49 5734 922 2728, Fax: +49 5734 922 2691, Mail: email@example.com,
* * *
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 ex-
ample, developments in the mobile communications industry, changes in
technology and the ability to timely and successfully develop new pro-
ducts and various other factors. Balda does not undertake any obliga-
tion 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. Securi-
ties Act of 1933, as amended (the ‘Securities Act’)) unless registered
under the Securities Act or pursuant to an exemption from such regis-
tration. The Shares have not been and will not be registered under the
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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