EANS-Adhoc: Balda AG / Negative EBIT and high EBT in 2010
17.03.2011
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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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17.03.2011
Balda AG: Negative EBIT and high EBT in 2010
– Sales revenues of 141.4 million euros above the previous year’s level(previous
year: 134.1 million euros)
– Earnings before exceptionals minus 8.7 million euros (previous year: plus 4.5
million euros)
– Operative earnings (EBIT) of minus 37.4 million euros
– Earnings before tax (EBT) of 93.3 million euros due to special effect of TPK
(previous year: plus 47.3 million euros)
– Net profit for the Group of 94.4 million euros (previous year: 48.9 million
euros)
– Outlook for 2011: Sales revenues at the previous year´s level and slightly
positive EBIT
(The above figures do not include the holding in Balda Motherson Solution, India
and Balda Solutions Hungaria Kft, Hungary, sold in 2010)
Bad Oeynhausen, 17 March 2011: The Frankfurt SDax listed company Balda AG
generated sales revenues of 141.4 million euros in continued operations in the
2010 financial year. Sales were therefore slightly above the previous year’s
level of 134.1 million euros.
Special write-downs of 28.6 million euros have a negative impact on the EBIT
The Balda Group generated earnings before exceptionals of minus 8.7 million
euros (previous year: plus 4.5 million euros). In particular the belowtarget
sales revenues, the significant increase in cost of materials and restructuring
costs had a negative impact on earnings before exceptionals. Prospects of lower
margins resulted in write-downs of tangible assets and goodwill in the amount
of 28.6 million euros in the MobileCom and Electronic Products segments
following impairment tests.
The operative earnings (EBIT) after exceptionals is therefore minus 37.4
million euros.
TPK: Impact of 124.6 million euros on earnings
After the initial public offering on 29 October 2010, Balda now holds 16.1
percent of the shares in the touchscreen manufacturer TPK. After the initial
public offering, the holding in TPK previously reported at book value based on
the ‘at equity’ method is now recorded as a financial instrument at market
value. This revaluation had a unique net impact on earnings in the amount of
around 124.6 million euros in 2010.
The company based in Bad Oeynhausen recorded a very positive EBT for the Group
as a whole of 93.3 million euros in the 2010 financial year. In the previous
year the Group posted a plus of 47.3 million euros.
The total Group (continued and discontinued segments) registered a net income
of 94.4 million euros. Last year the net income of the Group reached 48.9
million euros.
Earnings per share were, with 58,890,636 shares entitled for dividends as of 31
December 2010, 1.606 euros (previous year: 0.90 euros).
Cash and cash equivalents improved as at the end of 2010 by 4.7 million euros
compared to the previous year to 48.9 million euros. The negative cash flow
from operating activities was offset by the positive cash flows from investing
and financing activities.
The Balda Group’s balance sheet total increased as of 31 December 2010 by 561.2
million euros to 810.5 million euros compared to the reference value of 31
December 2009 with 249.3 million euros. The balance sheet of the Balda Group as
of the end of the 2010 financial year is affected greatly by the revaluation of
the holding in the touchscreen manufacturer TPK.
Solid financial base
The equity base increased significantly to 749.7 million euros (31 December
2009: 159.2 million euros). The equity ratio in the Group increased in the
period under review due to the high surplus and the revaluation of the TPK
shares to 92.5 percent after 63.9 percent as of the end of 2009.
2010 a year of realignment and diversification
Balda systematically continued the realignment of the Group in the 2010
financial year. The reorganisation of the MobileCom segment will be completed
during the first half of 2011. The segment did not achieve its target either
for sales or earnings, with competition intensifying and continued pressure on
prices.
The Balda Group has concentrated in particular on diversifying its core
competences in the period under review. In particular the Electronic Products
segment successfully implemented the strategic realignment with the development
and production of innovative products for new and existing customers in the
communications and consumer electronics markets. The Malaysia-based company
more than doubled its sales revenues compared to the previous year. However,
its earnings situation was not able to keep pace with this revenue performance.
Higher start-up and materials costs for new products squeezed margins tighter
than expected.
The Balda Medical segment successfully realised the strategy of diversification
into new products for new customers in the 2010 financial year. The segment
developed according to plan with a slight fall in sales. The earnings situation
is positive. The company completed a significant amount of preliminary work for
new projects which will result in sales in the 2011 financial year.
Outlook for 2011
The management of the Balda Group is not able to provide any forecast figures
for the 2011 financial year, but can only comment on trends due to the
insecurity of order call offs in the MobileCom segment.
The Balda Group is expecting sales volumes in the 2011 financial year to be the
same level as the previous year based on three productive working segments of
MobileCom, Electronic Products and Medical as well as slightly positive EBIT.
The Board of Directors will provide the operational business in the segment
MobileCom with all of the resources available. The MobileCom segment has to
achieve the defined performance and perspectives by the middle of the year.
After that, the Board of Directors will finally evaluate the opportunities for
the continued existence of the operative business in Beijing. If there is no
sign of a definite turnaround by the end of the first half of 2011, the Board
of Directors will make a decision.
After sales doubled in 2010, there is a realistic chance that the Electronic
Products segment, which was still making a loss in 2010, will make a profit in
2011. New products and scaling effects in the current financial year provide
reasons for a positive forecast for 2011.
The Medical segment will achieve sales and earnings growth in double figures in
2011.
Strategic growth for the Medical segment and dividend payment
Irrespective of the above-mentioned forecast, the Balda Group will continue to
pursue targeted strategic growth in the Medical segment. The envisaged
acquisition should strengthen the segment and the Balda Group. A final decision
should be made here by the middle of the year.
Balda AG is currently making arrangements so that it will be able to pay a
dividend in the event of any sale of shares from the holding in TPK. As a first
step the existing loss carry forwards were offset in the latest annual
financial statements of Balda AG by an appropriate release of capital reserves.
Table with the important key figures for 2010
Continued operations
Previous year figures without TPK
|in million euros |2010 |2009 |
| | | |
|Group revenues |141.4 |134.1 |
| | | |
|Total operating |156.3 |140.3 |
|performance | | |
| | | |
|EBITDA |0.4 |14.7 |
| | | |
|EBIT |-37.4 |4.5 |
| | | |
|EBIT margin (in percent |-23.9 |3.2 |
| | | |
|EBT |93.3 |47.3 |
| | | |
|Net income |94.4 |48.9 |
| | | |
|Cash flow from operating|-11.2 |20.6 |
|activities | | |
| | | |
|Investments |10.8 |9.3 |
| | | |
|Employees as of 31.12. |2,445 |3,713 |
| | | |
|Earnings per share (in |1.61 |0.90 |
|Euro)² | | |
| | | |
|Dividend |0 |0 |
| | | |
|Year-end share price (in|6.90 |3.49 |
|Euro) | | |
| | | |
|Equity |749.7 |159.2 |
| | | |
|Equity ratio (in | | |
|percent) |92.5 |63.9 |
1 Earnings before special effects: -8,7
² refers to dividend-entitled number of shares as of 31.12.2010: 58.890.636
(2009: 54.156.672)
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