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Subtitle: – Consolidated profit after taxes of 133.6 million euros due to the
part-sale of TPK shares
– Sales and operating earnings down year-on-year
– Outlook for calendar year 2012 confirmed
– Growth strategy for the Medical segment defined
– Restructuring measures of the Electronic Products segment right on schedule
– Shareholders will vote on important resolutions on 11 May 2012
Bad Oeynhausen (euro adhoc) – Bad Oeynhausen, 3 May 2012 – Balda Group
implemented key strategies for its future development in the first quarter of
2012. The Board of Directors, active as at 1 January 2012, pushed ahead with the
planning for the strategic orientation of the plastics processor and implemented
the first measures. The part-sale of the shares in the Chinese touchscreen
manufacturer TPK Holding Co., Ltd. during the reporting period generated a high
quarterly profit after taxes of 133.6 million euros. In the operating business,
the sales and earnings of both Medical and Electronic Products segments were
still below the prior-year figure. The Board of Directors confirmed its previous
outlook for the full calendar year 2012.
Dominik Müser, Chairman of the Board of Directors (CEO), Balda AG: ‘Balda made
good progress in the first quarter and is well on its way to becoming an
innovative company in the plastic processing sector with profitable business
that is growing again. We now have a clear idea of how our Medical activities
can be increased to a brand new level in the coming years. The restructuring
measures for our Electronic Products segment are right on schedule and should be
completed by the fourth quarter of this year. Overall, 2012 remains a year of
change for Balda.’
Sales and earnings key figures Q1 2012 Balda Group
– The Group generated 12.2 million euros in sales, 9.4 percent less than in the
previous year’s period (13.5 million euros). The reasons for this drop were
delayed order call-offs and start-up problems with new projects in the
Electronic Products segment. In the Medical segment, the delayed order of a
major customer also had a negative impact on sales.
– Consolidated earnings before interest and taxes (EBIT) came to -3.1 million
euros compared to -1.0 million euros in the first quarter of 2011. This result
was impacted by the decline in sales and additional costs such as those related
to the use of temporary workers in the Electronic Products segment.
– The financial result was positive at 136.9 million euros (Q1 2011: 7.0 million
euros). It was affected by earnings from the sale of 20 million TPK Holding
shares, which generated sales proceeds of 238 million euros. This reduced
Baldas’ share in TPK Holding from 16.1 percent to 7.6 percent.
– The Group therefore generated a quarterly profit after taxes of 133.6 million
euros (Q1 2011: 4.4 million euros).
– Earnings per share (based on 58.89 million shares) came to 2.27 euros (Q1
2011: 0.07 euros).
Development of the operating Group segments
– The Medical segment with headquarters in Bad Oeynhausen achieved 6.0 million
euros in sales in the first three months of 2012 (Q1 2011: 6.8 million euros).
The reason for this decline was delayed order call-offs for a new customer
project. Business, however, will increase as planned during the year. The
segment result (EBIT) amounted to -0.5 million euros on account of lower sales
and additional costs for new product start-ups (Q1 2011: 0.2 million euros).
– The Electronic Products segment, which is located in Malaysia, recorded sales
of 6.2 million euros in the first quarter of 2012 (Q1 2011: 6.6 million euros).
This drop was due to customers delaying order call-offs and the production
start-up of new projects. The segment result (EBIT) came to -1.2 million
euros (Q1 2011: -0.8 million euros), also caused by additional costs for quality
assurance and for the processing of orders. Segment processes and structures
were considerably tightened and optimised as part of the restructuring measures
started at the beginning of the year. Overall, this process is right on
Ordinary Annual General Meeting on 11 May 2012
As already announced on 29 March, Balda will propose to its shareholders
important resolutions for the future of the Group at the ordinary Annual General
Meeting on 11 May 2012 in Bielefeld. These include switching the financial year
to end on 30 June, which would result in a shortened financial year from 1
January to 30 June 2012. This would make it possible to pay, in the frame of a
further Annual General Meeting in autumn, another special dividend from the
proceeds of the part-sale of TPK shares, after a dividend of 1.30 euros per
share is already on the agenda on 11 May. In addition, resolutions on new
authorised capital and the authorisation to issue bonds will be proposed to the
shareholders. These capital measures, which serve to increase the company’s
options, aim to secure Balda’s future.
Update on the reorientation of the Group
The aim of Balda’s current reorientation is to lead the Group into a period of
profitable growth and to improve its operating business in order to generate
In the Medical segment, plans are to increase its internationalisation, expand
its service portfolio and customer base as well as to intensify its own value
creation. Potential foreign acquisitions are presently being identified for this
purpose with initial focus on the US market. The aim is to generate segment
sales in excess of 100 million euros in the medium term through careful
acquisitions (2010: 40 million euros).
In the Electronic Products segment, restructuring measures are being continued
in all areas to make the segment competitive again. At the same time, the
management is working on identifying attractive niche markets in which the
Electronic Products segment can utilise its technological know-how, generate
sufficient margins and grow organically. The focus is clearly on high-end
technical products for which reliable customer supplies at continuously high
quality standards at the right point in time are a major success factor.
Especially in these areas, Balda enjoys strategic advantages. The division is
able to offer the complete process – from R&D to tool-making, injection
moulding, finishing and assembly – in a single location at its Malaysia site.
In the non-operating Central Services segment (mainly holding company
functions), focus in 2012 will be on adjusting the structures to the
significantly reduced size of the Group after the sale of the MobileCom segment
in 2011 as well as realising corresponding cost savings.
Outlook for calendar year 2012
Balda continues to expect consolidated sales to be roughly on par with the
previous year in calendar year 2012 and Group EBIT to again come to a negative
one-million digit figure. Due to the proceeds from the part-sale of TPK Holding
shares, however, the Group anticipates a high consolidated profit after taxes.
The aim remains to sell the remaining shares in TPK Holding for an optimised
price during the course of the current year.
Information for editorials:
The Quarterly Report Q1 of Balda AG as of 31 March 2012 can be downloaded on the
company website at www.balda.de.
Further inquiry note:
Frank Elsner Kommunikation für Unternehmen GmbH
Tel.: +49 – 54 04 – 91 92 0
Fax: +49 – 54 04 – 91 92 29
company: 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: free trade: Berlin, München, Hamburg, Düsseldorf, Stuttgart,
regulated dealing/prime standard: Frankfurt