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.
– Sales revenue of 26.7 million euros in the first quarter slightly above the
previous year´s figure of 26.0 million euros
– EBIT improved by 0.4 million euros to minus 1.9 million euros following minus
2.3 million euros in the first quarter of 2010
– EBT improved by 2.7 million euros to 4.7 million euros thanks to positive
financial earnings (same period for the previous year: 2.0 million euros)
– Cash flow from current business activities increased significantly by 10.7
million euros to 9.1 million euros (previous year: minus 1.6 million euros).
– MobileCom segment: Looking for a strategic partner and to stabilise current
– Expansion of the Medical segment with an acquisition, possibly in a related
product area, as planned / Balda able to finance a potential takeover by its own
– Forecast for 2011: Sales revenue at the previous year´s level with a slightly
Bad Oeynhausen, 5 May 2011 – The Frankfurt SDax listed company Balda AG
generated sales of 26.7 million euros in the first quarter of 2011 compared to
26.0 million euros in the same period for the previous year. This is a slight
increase of 0.7 million euros or 2.8 percent. The Group’s EBIT of minus 1.9
million euros was also an improvement on the previous year’s figure (minus 2.3
million euros). The sales and earnings situation is in line with the Group´s
targets for the first quarter of 2011.
The Balda Group achieved positive financial earnings of 6.6 million euros in the
first quarter of 2011 following 4.3 million euros in the previous year. An
increase in interest income of 0.8 million euros and currency gains of 6.8
million euros relating to internal financing are responsible for this. The EBT
was plus 4.7 million euros thanks to positive financial earnings (same period
for the previous year: 2.0 million euros).
Overall the Balda Group recorded a consolidated profit after the first three
months of the current financial year of 4.4 million euros compared to 1.5
million euros in the same period of the previous year. In the period under the
review the earnings per share were 7.4 cents. In the same period of the previous
year this figure was 3.0 cents.
Significant increase in operational cash flow
Due to the fall in working capital (current assets less current liabilities)
particularly in the MobileCom segment, the cash flow from current business
activities was at 9.1 million euros better than the previous year’s figure of
minus 1.6 million euros. In addition, losses did not need to be offset. The
earnings before interest, taxes, depreciation and amortisation (EBITDA) was at
only minus 0.1 million euros in the first quarter of 2011.
Heterogeneous development for the three operational Group segments
The MobileCom segment generated sales revenue of 13.2 million euros in the first
quarter compared to 14.2 million euros in the previous year. Overall the segment
recorded an EBIT of minus 0.9 million euros in the first quarter following a
slightly positive EBIT in the previous year. The continuing pressure on prices
as a result of intense competition among suppliers of mobile phone manufacturers
(and electronics producers) resulted in stagnant sales and lower margins. The
Balda Group has taken immediate measures to improve performance and is looking
for a strategic partner for the two production plants in Beijing.
The Electronic Products achieved its goals in the first quarter. The segment
increased its sales revenue significantly in the first quarter by 19.8 percent
to 6.6 million euros (previous year: 5.5 million euros). The measures taken to
reduce costs had a positive impact in the 2010 financial year. The Electronic
Products segment’s EBIT was, at minus 0.8 million euros, 0.9 million euros less
than the previous year’s loss of 1.7 million euros.
The Medical segment´s sales were above target. The Medical segment benefited
from advance payments made in 2010 for future projects. The segment generated
sales revenue of 6.8 million euros in the first quarter of 2011 following 6.2
million euros in the previous year. The Medical segment achieved an EBIT of 0.3
million euros as of 31 March 2011 following 0.4 million euros in the same period
for the previous year.
The Group is working hard and determined on the acquisition of a substantial
share in a company in the Medical market segment or related to the Medical
market segment. The due diligence phase in the acquisition processes will soon
The Balda Group´s equity has increased from 749.7 million euros as of 31
December 2010 to 816.0 million euros as of the balance sheet date of the period
under review. The subsequent value of the TPK shares as of 31 March 2011 was
responsible for this. The fall in currency conversion differences due to changes
in euro exchange rates had an opposite effect. The equity ratio as of 31 March
2011 was 93.2 percent (31 December 2010: 92.5 percent). Liquid funds as of 31
March 2011 totalled 48.3 million euros (31 December 2010: 48.9 million euros).
Thus, the company continues to have a comfortable financial base.
Outlook for 2011
For the 2011 financial year the Board of Directors confirms the forecast it
provided in the Annual Report 2010, i.e. the Board of Directors is expecting
sales revenue to be at the previous year’s level and a slightly positive EBIT.
Not including income from the planned sale of TPK shares, the EBT is likely to
be at the same level as the EBIT. The Board of Directors still plans to pay an
attractive dividend in the 2012 financial year.
By the end of the first half of 2011 the Supervisory Board should have received
a submission for decision concerning the acquisition in the Medical segment.
end of ad-hoc-announcement
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.
* * *
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
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
Further inquiry note:
Tel.: +49 (0) 5734 922-2728
issuer: Balda AG
Bergkirchener Str. 228
D-32549 Bad Oeynhausen
phone: +49 (0) 5734 9 22-0
FAX: +49 (0) 5734 922-2747
sector: Semiconductors & active components
indexes: CDAX, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, München