EANS-Adhoc: Balda AG third quarter results: best quarter for sales in 2010 with negative EBIT and positive EBT

/in /

04.11.2010
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ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro
adhoc with the aim of a Europe-wide distribution. The issuer is solely
responsible for the content of this announcement.
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04.11.2010

Balda AG third quarter results: best quarter for sales in 2010 with negative
EBIT and positive EBT

• Surplus for combined group at 6.9 million euros (previous year: 11.2 million
euros)
• Sales revenues at 108.6 million euros (previous year: 102.5 million euros)
• 3rd quarter best for revenues at 45.2 million euros (previous year: 36.3
million euros)
• EBIT at minus 3.6 million euros (previous year: plus 3.8 million euros)
• EBT at 7.8 million euros (previous year: 8.8 million euros)
• New plant in Beijing in operation
• Samsung, Panasonic and Sanyo new MobileCom customers
• Successful initial public offering of Balda’s shareholding TPK
• Downward adjustment of forecast for 2010

Bad Oeynhausen, 4 November 2010 – The Frankfurt SDax listed company Balda AG
achieved sales revenue of 108.6 million euros (previous year: 102.5 million
euros) in its continued operations in the first nine months of 2010. In the
third quarter the Group generated its best quarterly result for sales in the
2010 financial year with revenues of 45.2 million euros (previous year: 36.3
million euros). Sales in the MobileCom division were below expectations.

Mixed results

The Group´s operative result (EBIT) fell to minus 3.6 million euros (previous
year: plus 3.8 million euros). In the first nine months of 2010 the EBIT was
affected by one-off expenditure of 3.0 million euros on the reorganisation and
continued high pressure on margins in the MobileCom segment. In all divisions
the EBIT was burdened by development activities for 2011 and cost-intensive
start-up phases for the production of new products. The EBIT in the second
quarter was minus 1.5 million euros after plus 1.3 million euros in the same
period for the previous year.

The result of associated companies with earnings from the TPK shareholding was
14.3 million euros (previous year: 10.7 million euros). TPK Holding Ltd.
successfully completed its initial public offering on 29 October with the issue
of around 224 million shares. Its share price after the first day of trading
was 505 Taiwanese dollars (around 12 euros). After the latest capital increase
Balda´s stake in TPK is 16.1 percent.

With the profit contribution of TPK, the EBT after nine months of 2010 is
positive at 7.8 million euros (previous year: 8.8 million euros). The combined
group´s surplus after nine months (continued and discontinued operations) was
6.9 million euros (previous year: 11.2 million euros). The combined group´s
earnings per share reached 13.0 eurocents after 21.5 eurocents in the same
period for the previous year.

Development of the divisions

In the third quarter of 2010 the results achieved by the Balda Group´s three
divisions were mixed. The sales volume in the MobileCom business area fell as
compared to last year´s quarter. Order call-offs planned with customers did not
occur in sufficient volume. The pressure on prices continued. This burdened
the earnings situation. The EBIT came under additional pressure from the sales
mix with a high share of low-margin bought-in electronic components and
costintensive production start-ups.

The Electronic Products division significantly increased its sales revenue
compared to the previous year as planned. The operative result in the third
quarter was nearly break-even. In addition to the expensive production start-
ups in the second quarter, expensive bought-in electronic components squeezed
the margins in Malaysia as well.

The Medical division´s revenue and EBIT were as planned.

|In mio. |Sales |EBIT |
|euros | | |
| |Nine |Nine |Nine |Nine |
| |months |months |months |months |
| |2010 |2009 |2010 |2009 |
|MobileCom|62.1 |66.5 |-5.6 |8.2 |
|Electro- |26.1 |11.9 |-2.6 |-1.6 |
|nic | | | | |
|Products | | | | |
|Medical |20.3 |24.1 |1.6 |3.5 |

Financial situation

As of 30 September 2010 the Balda Group had liquid assets of 55.3 million
euros. Balda can finance its operational business from its own resources.

Equity increased

The Group’s equity increased as of the balance sheet date to 180.4 million
euros (31 December 2009: 159.2 million euros). The equity ratio was 63.3
percent at the end of the third quarter of 2010 (year-end of 2009: 63.9
percent).

Outlook

The Balda Group is expecting sales in the MobileCom division in the fourth
quarter to remain at the same level of the third quarter or possibly to fall.
It is expected that the EBIT in the MobileCom division will be reduced further.
The Group does expect an improvement in 2011 with new customers. In addition to
Samsung, Panasonic and Sanyo are also among the new clients for 2011. The
state-of-the-art plant in Beijing with its new technologies will establish
cost effective processes and thus strengthen the competitiveness.

The Electronic Products division will achieve its sales target, but its EBIT
will remain negative for 2010. For 2011 a break-even result is expected. The
Medical division will achieve its sales target and its expected positive EBIT.
In 2011 Medical will gain revenue in the low double-digit percentage-range and
also increase its EBIT.

On the basis of the final figures for the three-quarter period, the Balda Group
revises its last forecast for the 2010 financial year issued in October 2010.
The company is expecting sales revenue to be below the forecasted range and a
negative EBIT in the single-digit million-range. The EBT will be positive. This
forecast for the EBIT and EBT is valid unless extraordinary effects occur.

***

Table with key figures for the first nine months of 2010
The Balda Group at a glance
(continued operations)
In mio. euros

| |Nine |Nine |Change |3rd |2nd |
| |months |months |in |quarter|quarter|
| |2010 3 |2009 3 |percent | | |
| | | | |2010 3 |2010 3 |
|Sales |108.5 |102.5 |6.0 |45.2 |37.4 |
| | | | | | |
|MobileCom |62.1 |66.5 |- 6.6 |26.8 |21.1 |
|Medical |20.3 |24.1 |- 15.8 |7.2 |6.9 |
|Electronic |26.1 |11.9 |119.3 |11.2 |9.4 |
|Products | | | | | |
|Total output|122.5 |110.3 |11.1 |48.6 |45.2 |
|EBIT |- 3.6 |3.8 | |- 1.5 |0.2 |
|EBIT margin |- 2.9 |3.4 | |- 3.2 |0.4 |
|(in %) | | | | | |
|Earnings |7.8 |8.8 |- 11.4 |2.0 |3.7 |
|before tax | | | | | |
|(EBT) | | | | | |
|Earnings |7.5 |9.1 |- 17.6 |1.8 |3.9 |
|continued | | | | | |
|operations | | | | | |
|Earnings per|14.2 |17.7 |- 19.8 |3.3 |7.4 |
|share (in | | | | | |
|cents) 1 | | | | | |
|Number of |2,951 |6,898 |- 57.2 |2,951 |3,731 |
|employees 2 | | | | | |

1) Number shares as of the reporting date in millions 54.157 (previous year’s
reporting date: 54.157)
2) Number of employees including agency staff, trainees and temporary
personnel – only continued operations
3) Including Balda Medical GmbH & Co. KG and Balda Grundstücks-Vermietungs
GmbH & Co. KG

Company profile of Balda AG

The Balda Group develops and produces complete plastic assemblies, electronic
products and products for the medical technology industry. Balda´s customers
are leading companies in the mobile phone, consumer electronics, electronic
communications, pharmaceutical and medical technology markets. The Group is
internationally positioned with production sites in China, Malaysia and
Germany. A subsidiary in the USA serves North American customers in product
design and development. Within the scope of its shareholding in a leading
touchscreen manufacturer in China, Balda is participating in the dynamic
development of the touchscreen displays market.

* * *

Contact: Balda AG, Clas Röhl, Telephone: (05734) 922 – 2728, Fax: (05734) 922 –
2604, E-mail: croehl@balda.de, Internet: ¿U1www.balda.de¿U0

* * *

This ad-hoc announcement contains forward-looking statements which are based on
the current expectations of Balda´s management. They therefore contain a range
of risks and uncertainties because they relate to future events and depend on
circumstances that will occur in the future, such as, for example, developments
in the mobile communications industry, changes in technology and the ability to
timely and successfully develop new products and various other factors. Balda
will neither revise these forward-looking statements nor correct them in the
event of any unexpected development, unless there is a legal obligation to do
so.

This ad-hoc announcement represents neither an offer to buy shares nor an
invitation to submit an offer to buy shares in the United States or any other
country. The shares in Balda AG (the ‘shares’) may not be offered or sold in
the United States or to or for the account of U.S. persons (as defined in
Regulation S of the U.S. Securities Act of 1933, in its current version (the
‘Securities Act’)), unless they are registered or are exempt from registration
under the Securities Act. The shares have not been and will not be registered
under the Securities Act.

Further inquiry note:
Clas Röhl
Tel.: +49 (0) 5734 922-2728
croehl@balda.de

issuer: Balda AG
Bergkirchener Str. 228
D-32549 Bad Oeynhausen
phone: +49 (0) 5734 9 22-0
FAX: +49 (0) 5734 922-2747
mail: info@balda.de
WWW: ¿U1http://www.balda.de¿U0
sector: Semiconductors & active components
ISIN: DE0005215107
indexes: CDAX, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, München
language: English