DGAP-Adhoc: Balda AG confirms yearly forecast despite slightly missing its targets inBalda AG:


Balda AG / Key word(s): Half Year Report

26.07.2006 07:58

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

by DGAP – a company of EquityStory AG.

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Balda AG confirms yearly forecast despite slightly missing its targets in


– Turnover increases slightly by 4.4 percent in the first half of the


– Earnings in Asia with an increase of 29.7 percent, however below


– EBIT in first half of the year at 11.1 million euro.

– EBT of 9.3 million euro.

The Balda group has increased its revenues slightly by 4.4 percent to 186.3

million euro (previous year: 178.4) in the first six months of 2006

compared to the same period of the previous year. The specialist for

plastic components for mobile telephones achieved sales of 93.5 million

euro in the second quarter of 2006, 4.1 percent less then in the reference

period of 2005 and 0.8 percent more than in the first quarter of 2006.

Due to this negative development in the second quarter, sales fell short of

the group’s forecast. The reason for this was release orders of a customer

that were not included in the original forecast. This call, which did not

correspond to the budget of Balda, mainly affected the site in Suzhou in

China and partly also Manaus in Brazil. More than half of the forecasted

variance in the turnover of the second quarter fell in the month of June

and was thus unidentifiable in the forecasts of the customer in May. In

view of the order situation for the second half of the year and new

customer orders as well as additional sales potentials, the Balda board

confirmed the forecast for business year 2006 despite these negative

special items. In the first half of the year, the production sites in

Europe earned slightly more than the earnings stated in the concern

forecast of 121.3 million euro (previous year: 123.3 million euro). The

drop was lower than expected. Asia increased its turnover in the first six

months by 29.7 percent to 58.3 million euro (previous year: 45.0 million

euro) despite falling short of the planned amount. The American region

recorded sales of 7.3 million euro (previous year: 10.9 million euro). The

activities in India were not yet sales related.

The distinct undershooting of the sales forecasts in the period that was

already viewed in the forecast as being the weakest quarter of the year,

led to a lower coverage of the fixed costs and thus to a declining earnings

situation. One-time expenses for setting up the Beijing site and expansion

of the tool making site in Suzhou burdened earnings additionally. The

consolidated operating earnings (EBIT) closed 54.6 percent lower in the

first half of the year at 11.1 million euro (same period of previous year:

24.5 million euro). The EBIT in the second quarter amounted to 3.8 million

euro (previous year: 13.9 million euro). Europe contributed 5.2 million

euro (previous year: 7.3 million euro), Asia 5.6 million euro (previous

year: 10.8 million euro) and the American region contributed 0.4 million

euro (previous year: 1.2 million euro) to the EBIT in the first half of the

year. The EBIT margin was 5.8 percent (previous year: 13.0 percent).

The earnings before taxes (EBT) decreased by 58.0 percent to 9.3 million

euro (previous year: 22.1 million euro). In the second quarter, the EBT

reached 2.8 million euro (previous year: 12.9 million euro). The Group’s

net profit in the first half of the year showed a drop of 59.2 percent to

5.9 million euro (previous year: 14.5 million euro). In the first six

months, the earnings per share amounted to 14.7 cents (previous year: 36.4

cents at 39.858 million shares) on the calculation base of 40.28 million

shares (status at 30.06.2006).

Despite the declining earnings situation, the operating cash flow increased

by 2.2 million euro to 19.0 million euro compared with the same period of

the previous year. This strong influx of funds is reflected in the expanded

factorisation from the ABS transactions closed in May. The quota of

shareholder’s capital of the Balda concern remains unchanged at the high

level of 51.4 percent (previous year: 49.1 percent). The slight improvement

is above all due to the declining balance sheet total. Shareholder’s

capital decreased absolutely by 9.2 million euro due to dividend payments

of 12.0 million euro.

The new plant in Beijing meets all expectations absolutely. The setup of

the production site in India is on schedule, despite the customer having

postponed the production start for the first project to the beginning of

the fourth quarter. After the closing of the second quarter, Balda started

the joint venture with TPK to produce highly innovative touch screens.

Production will commence in the fourth quarter of 2006. Balda upholds the

yearly forecast 2006 with a growth rate of 15 percent to 450 – 460 million

euro at an EBT of 46 – 48 million euro.

Balda AG, Cersten Hellmich and Kathrin Wiederrich

(Investor Relations), Telephone: +49 (0) 5734 922-2706 / 2751, Fax: +49 (0)

5734 922-2691, E-Mail: chellmich@balda.de, kwiederrich@balda.de, Internet:


26.07.2006 DGAP’s Distribution Services include Regulatory Announcements,

Financial/Corporate News and Press Releases.

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


Language: English

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

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