DGAP-Adhoc: Balda AG: delayed revenue growth in the first quarter / quarterly loss below plan


Balda AG / Key word(s): Quarter Results

07.05.2008 07:05

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.


– Slight growth in revenues to 45.2 million euros (2007: 42.9 million


– Delayed start of production hindering revenue growth

– Special effects have negative influence on results

– Minus 5.2 million euros operating result (EBIT) of continued operations

(2007: plus 0.8 million euros) below plan

– Guidance for 2008 confirmed: Revenues and earnings growth expected to be

borne by second half of the year

Bad Oeynhausen, May 7, 2008. The Balda Group increased its sales revenues

from January to March 2008 in continued operations to 45.2 million euros

(previous year: 42.9 million euros). The slight increase compared to the

same period of the previous year is primarily due to the touch screen

operations at the TPK subsidiary. The sales in the continued European

operations were generated exclusively by the medical technology sector.

Sales revenues increased by 0.9 million euros or 16.4 percent to 6.6

million euros compared to the first quarter of 2007 (previous year: 5.7

million euros).

Balda closed the first quarter of 2008 with sales revenues of 34.7 million

euros in Asia (previous year: 35.3 million euros). This is a drop of 0.6

million euros or 1.7 percent compared to the previous year’s quarter. The

limited development of sales in both the infocom and the touch screen

operations compared to the second half of 2007 hindered a more dynamic

sales trend. Old projects are being run down and new ones being ramped up

with a time lag. In addition to this, the first quarter is typically a

seasonally weak period for the mobile phone market.

Company investments in tangible and intangible fixed assets in continued

operations amounted to 9.8 million euros in the first quarter of the

current fiscal year (previous year: 14,8 million euros). Investments for

the most part concerned preproduction costs for customer contracts at TPK.

The Balda Group employed 6,550 staff worldwide in the continued business

areas as of 31 March 2008. This is a minus of 9.3 percent compared to the

end of the 2007 fiscal year with 7,218 employees. The reduction primarily

affected temporary workers at TPK and Balda Solutions in Suzhou, China.

Projects are being discontinued at both production locations. The follow-up

projects are beginning according to plan but with a delay in the pilot


The expenditures for materials and services rendered in the period under

review expanded disproportionately by 8.6 million euros or 42.4 percent to

28.7 million euros (previous year: 20.1 million euros). The main reason for

the increase was the growth in business volume for TPK in China compared to

the first quarter of 2007. The touch screen operations require

significantly higher material usage than the other Balda operations.

As expected, the operating result (EBIT) dropped into the negative at the

end of the first quarter of 2008 with minus 5.2 million euros (previous

year: plus 0,8 million euros). In this result expenditures for depreciation

on activated customer relations in Asia are reflected as well as increased

consulting costs and the aforementioned impact of projects being run down

and being ramped up with a time lag. The earnings before taxes (EBT)

amounted to minus 7.4 million euros after the first three months of the

current fiscal year (previous year: minus 1.9 million euros).

After taxes and minority interests, the Balda Group closed the first three

months of 2008 with a deficit of 6,7 million euros in the quarterly results

for the continued operations (previous year: surplus of 1,7 million euros).

Based on 54.2 million shares (status at 31 March 2008), an undiluted

outcome per share of minus 0,9 cents has been calculated from the deficit

in the first quarter of 2008 (previous year: minus 8.1 cents at 47.4

million shares).

For 2008, the Balda Group is planning revenues of 600 million US dollars

and earnings before taxes (EBT) of 35 million US dollars based on the

exchange rate of 1.45 US dollars per euro. The group wants to achieve over

80 percent of its revenues in Asia in the current financial year 2008.


Information and Explaination of the Issuer to this News:

Key figures of Balda AG (continued operations)

in mio. EUR Q1/2008 Q1/2007 Variation in %

Revenues 45.2 42.9 5.5

Europe 6.6 5.7 16.4

Asia 34.7 35.3 -1.7

America 3.9 3.3 17.7

India 0.2 – –

Total operating performance 52.5 43.4 20.2

EBITDA 1.1 3.8 -72.3

Operating result (EBIT) -5.2 0.8 -757,3

EBIT margin (in %) -9.9 1.8

Earnings before taxes (EBT) -7.4 -1.9 -300.1

Q1 net income -6.7 1.7 -485.3

Q1 net income including

discontinued operations -0.5 -4.1 88.4

Earnings per share (in cents) -0.9 -8.7 89.9

Employees 6,550 7,351 -10.9

If you have any questions please contact: Balda AG, Clas Röhl, Phone: +49

5734 922 2728, Fax: +49 5734 922 2691, Mail: croehl@balda.de, Internet:


07.05.2008 DGAP’s Distribution Services include Regulatory Announcements,

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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