Balda AG / Key word(s): Final 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 turns into a global high-tech company
* Pre-tax profit (EBT) of 50 to 55 million euros expected for 2007
* Estimated earnings per share in 2007 over 0.90 euro
* Pre-tax loss (EBT) in 2006 49.5 million eu-ros as expected
* No dividend payment for 2006
Frankfurt / Bad Oeynhausen, 28 March 2007 – In 2006 Balda AG has completed
its entry into the touchscreen technology market with the acquisition of
its stake in TPK Holding. The second half of the year was characterized by
BenQ and by the accelerated transfer of the mobile telephone manufacturers’
production to Asia. Against this background Balda attained, as previously
forecasted, a pre-tax result (EBT) of minus 49.5 million euros in 2006
(previous year: pre-tax profit of 49.7 million euros). Sales were 370.9
million euros, and thus 26.3 million euros, 6.6 per cent respectively,
lower than last years’ 397.2 million euros. Balda has turned into a
supplier of highly complex system solutions in both the plastic and the
touchscreen technology. For 2007 Balda expects a pre-tax profit (EBT) of 50
to 55 million euros.
Financial year 2006
The second half of 2006 in particular was characterized by special items
arising in the Infocom division. These charges and the resulting sale of
production facilities led to a negative result for 2006. The consolidated
after tax loss amounted to 42.0 million euros (previous year: profit after
tax of 33.4 million euros).
Necessary adjustments and depreciations accounted for the major part of the
charges in the financial year, but are not cash-relevant. Based on 40.28
million shares the resulting earnings per share (EPS) for 2006 are minus
1.04 euro (previous year: profit per share of 0.83 euro). At the general
meeting it will be proposed that no dividend is to be paid. For the current
year, however, the group anticipates positive earnings per share exceeding
In the past year Balda has successfully pushed ahead with the shift towards
transforming into a global technology company. The sale of several plant
facilities took place as announced in October.
Throughout the group Balda had 8,315 employees as of the end of 2006
(previous year: 8,044). Following the plant sales, an almost completely
foregoing of the use of temporary employees, and the reduction in the
number of jobs in Bad Oeynhausen, the German work-force has been decreased,
as planned, by around 1,500 employees.
New technologies, new markets, new customers
In 2006 Balda acquired a 50 per cent stake in TPK Holding, the manufacturer
of innovative touchscreen solutions, held through Balda Investments
Singapore (BIS). BIS is a 95 per cent owned subsidiary of Balda. Balda has
thus expanded its portfolio to include fast growing future technologies.
The TPK founder family Chiang has in return taken up a stake in Balda AG,
and is now the largest private shareholder with a stake of 15 per cent.
The Infocom division is strongly positioned in the important growth
markets China and India. With TPK Balda is a supplier of highly complex
systems and has a technological lead of about two years in the field of
Balda has started the 2007 financial year as planned. Expectations
regarding product output remain unchanged. Consolidated revenues of 600 to
650 million euros and a pre-tax profit (EBT) of 50 to 55 million euros
have been budgeted. This leads to earnings per share (net) of more than 90
For seasonal reasons the third and fourth quarters are traditionally
stronger in the Infocom division than the first two quarters of the year. A
similar cycle is also to be expected at TPK in 2007. Here the mass
production begins towards the end of the first quarter. Balda is prepared
to amend its capacities flexibly in line with rising demand. Thus sales
and earnings will pick up momentum in the second half of the year.
The touchscreen production of TPK is seen to make a considerable
contribution to the expected increase in revenues. It is anticipated that
in 2007 the foreign production facilities account for 80 per cent of the
Balda targets revenues of one billion euros by the end of 2010.
28.03.2007 DGAP’s Distribution Services include Regulatory Announcements,
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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