DGAP-News: Balda AG: Balda successful with the continued operations in Q3 2007


Balda AG / Key word(s): Quarter Results

31.10.2007 07:31


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 assem-

bles the LCD display, we provide the sensor. For this reason with the

same number of pieces the revenues are lower relative to products where

we supply the entire module comprising sensor and display,’ says Joachim

Gut, the Chairman of the Managing Board of Balda AG.

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 confirma-

tion 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. ‘As we lease the plants for

the long term, the expansion will not lead to any charges in 2007,’

said Gut.

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 development

is express confirmation of the successful re-orientation of the Balda


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

September 2007 were 38.0 million euros (in the corresponding period

of the previous 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

operating 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 million euros).


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 Euro-

pean Infocom segment, for which sales talks with a number of poten-

tial buyers are conducted, is expected to be weak for the rest of 2007.

Balda Medical continues to develop better than planned and will probably

clearly surpass the sales revenues of 25.0 million euros budgeted for

2007. For the full 2007 fiscal year it is expected that the continued

operations as a whole will post a further rise in revenues and a posi-

tive pre-tax result. The positive growth expectations for 2008 are still


* * *

Key ratios of the continued operations

Q3 2007 Q3 2006 Change 30.9.2- 30.9.2- Change

007 006

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

30.9.) %

Capital stock(in 47,387, 40,279, + 47,387, 40,279, +17.6

shares) 088 958 17.6% 088 958 %

* * *

Company profile Balda AG

The internationally operating Balda Group develops and produces

highly integrated devices comprising plastic, metal and electro-

nic 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


The integration of plastic and touch screen technologies creates

completely 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 facilities in the region. Plants in Brazil and

in Malaysia, as well as the facility in Germany for Balda Medical,

underline the global competitiveness 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 con-

ference, 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: croehl@balda.de,

Internet: www.balda.de

* * *

This press 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 press 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.

Securities Act of 1933, as amended (the ‘Securities Act’)) unless re-

gistered under the Securities Act or pursuant to an exemption from such

registration. The Shares have not been and will not be registered under

the Securities Act.

31.10.2007 Dissemination of a Corporate News, transmitted by DGAP –

a company of EquityStory AG.

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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