DGAP-News: Balda turns into a global high-tech company


Balda AG / Key word(s): Final Results

28.03.2007 07:35


Balda turns into a global high-tech company

Balda heads for further growth in 2007

* 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 euros 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, thus creating an important basis for profitable

growth. 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. For 2007 Balda’s CEO Joachim Gut gives a promising

outlook: ‘We have made Balda a supplier of highly complex system solutions

in both the plastic and the touchscreen technology. This is where the

future lies.’ 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

0.90 euro.


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 the use of temporary employees, and the reduction in the number

of jobs in Bad Oeynhausen, the German workforce 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 system and

has a technological lead of about two years in the field of touchscreen



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 euro


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

consolidated revenues.

‘2006 was a year of change, but a change always constitutes an opportunity

and we have seized this opportunity,’ Gut summarizes the past financial

year. Balda targets revenues of one billion euros by the end of 2010.


The internationally operating Balda develops and produces highly integrated

devices comprising plastic, metal and electronic components, among other

things for touch sensors. Among the customers of the SDAX listed company

are international brand-names from the mobile telephony industry, medical

technology and various related markets.

The integration of plastic and touchscreen 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. Five additional manufacturing facilities in

Malaysia, Brazil, Germany and Hungary underline Balda’s global


28.03.2007 Dissemination of a Corporate News, transmitted by DGAP –

a company of EquityStory AG.

The issuer is solely responsible for the content of this announcement.

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