Balda AG / Key word(s): Half Year Report
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 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: firstname.lastname@example.org, email@example.com, Internet:
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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