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Bad Oeynhausen (euro adhoc) – Balda AG: Earnings situation in 2009 was positive
and exceeded expectations / 2010 is on a course of growth
• 2009: operative result (EBIT) of 2.5 million euros clearly on the upper
line of the forecasted corridor
• Revenues 2009 with 139.0 million euros in the plan (previous year: 198.1
• Earnings before tax (EBT) increased due to special effects by 70.5 million
euros from minus 25.2 million euros to 45.3 million euros
• Net profit increased by 79.5 million euros, from minus 33.1 million euros
to 46.4 million euros
• Comfortable liquidity in 2010
• Equity ratio almost doubled to around 64 percent
• Earnings per share increased to 0.91 euros (previous year: minus 0.965
• Forecast 2010: 10 to 15 percent sales volume with at least a stable EBIT
and clearly positive EBT
Bad Oeynhausen, 18 March 2010 – “In the fiscal year 2009, the Balda Group
paved the way for a successful and sustainable future. The Group will continue
to grow profitably on its own with a new strategy, a newly formed company
structure and robust funding,´´ explained Chief Financial Officer Rainer Mohr
at the annual press conference of the company in Bad Oeynhausen.
“Compared to the previous year´s period, the Group significantly turned the
earnings situation into the black region,´´ noted Mohr. Even in the difficult
market environment of the recessive fiscal year 2009, the Group demonstrated
strength and achieved an operative result on top of the forecasted range in the
continued operations with 2.5 million euros (previous year: minus 0.6 million
euros/without TPK). The EBIT for 2009 was particularly noteworthy. After all,
the sales volume declined as anticipated during the year to 139.0 million euros
(previous year: 198.1 million euros). According to Mohr, the lower demand in
the global mobile phone market and the declining orders of Balda customers in
2009 are especially responsible for this development.
The Group increased its pre-tax earnings (EBT) under the influence of special
effects to 45.3 million euros.
Taking into account the increased taxes on income and earnings, the net income
of the continued operations increased to 46.4 million euros (previous year:
minus 33.1 million euros).
The earnings per share, based on an unchanged stock of shares, were positive at
0.91 euros (previous year: minus 0.965 euros).
Clear growth strategy in the fiscal year 2010
The manufacturer of complete plastic components, electronics and healthcare
products will consistently concentrate in the current fiscal year on the
development of its advanced technologies, its manufacturing capabilities and
diversification of the product portfolio. “We will continue to strengthen our
competitiveness,´´ said Mohr. The Group plans to increase its sales volume by
10 to 15 percent in 2010, with at least a stable EBIT and a pronounced positive
pre-tax profit (EBT). “We are very confident for the current fiscal year,´´
“In 2010, we anticipate a slight recovery in all markets worldwide to whom we
supply indirectly and an upturn in consumer confidence. However, we are
anticipating a highly intensive price competition among our customers in the
MobileCom market, which will increase the pressure on the margins,´´ said Mohr.
In the China segment, Balda is planning a double-digit growth in the
manufacture of complete plastic components for mobile phones in 2010. The new
production facility in Beijing, operational in the second half of the year, is
designed for mass production.
We continue to critically monitor the segment India.
Series of High Tech-Product innovations
“The segment Malaysia will achieve a turnaround in 2010 with a significant
growth in sales and earnings,´´ Mohr stated. Already in December 2009, Malaysia
started the nearly complete production of four digital cameras for Canon. At
the turn of the year, production of four innovative electronic products began
for a worldwide distributor of mobile phone accessories. These are two
wireless, high-tech earphones connected with a mobile phone in an attractive
design with a modern monitoring system for reduced noise. Moreover, two
innovative hands-free sets for cars, each with a Bluetooth connection are
already being delivered.
The ‘Portable Media Player’ is another innovative product on the verge of
delivery. ‘It is a touch screen device in the ‘Tablet format’. The purpose is
aimed at the use of the entire Internet offer with all the printed and
audiovisual content. Moreover, the innovative device delivers a MP3 player with
powerful speakers. Balda Solutions Malaysia has developed this multiple player
with partners. The product will be launched with two different technological
options by two international wireless providers.
“The media player demonstrates our highly developed competencies in electronic
products in the Malaysia segment. The product underlines our optimism in future
electronics products,´´ said Mohr.
In 2009, Balda Medical won a new order from a leading European pharmaceutical
company. Production will begin in 2011. The revenues and earnings situation of
Balda Medical are projected to remain unchanged in 2010.
“These prospects document our positive outlook for the fiscal year 2010,´´
2009 was a year of change and upheaval
In 2009, the Balda Group moved the segment Germany with Balda Medical from the
discontinued operations into the continued operations as the fourth segment, in
addition to the plastic components segment in China and India and the
manufacturing of electronic products in Malaysia. The development of the four
segments of the Balda group varied.
Particularly hard hit was the business volume of the Malaysia segment,
previously active in the MobileCom market. The location in Ipoh has
discontinued the plastics processing for mobile telephones completely. A
customer has partly moved his mobile phone production to Balda Beijing. Other
projects were taken in-house by a customer. Also, the segment India did not
make a positive contribution to consolidated earnings in 2009. The segments
China and Germany were clearly profitable in 2009. Mohr called 2009 ‘a year of
change and upheaval.’
Earnings situation in 2009 positively above expectations
“The almost halved financial result compared to the prior year period still
remained on a high level in 2009, due to the comparatively high lending rates
for bank loans at minus 8.1 million euros (previous year: minus 13.8 million
euros/without TPK). There is considerable room for improvement here in 2010,´´
The pre-tax profit (EBT) in the Group jumped up strongly due to the strong
inflows from the item ‘earnings from affiliated companies’. At 50.9 million
euros, it contains the proportionate 2009 gain in TPK and the proceeds from the
sale of the shares of TPK. The Group increased the EBT in the continued
operations to 45.3 million euros (previous year: minus 25.2 million euros).
The net income for the entire Group, including the annual income from the
discontinued operations, increased to 48.9 million euros (previous year: minus
54.2 million euros).
Mohr described ‘the earnings situation of the Group 2009 in total as exceeding
The Supervisory and Board of Directors of Balda AG will propose to the
shareholders at the AGM on 25 May 2010 in Bielefeld to waive the payment of a
dividend for the fiscal year 2009. The Group needs the liquidity in 2010 in
order to fulfil all financial obligations without outside help.
The equity increased significantly to 159.2 million euros (previous year: 100.6
million euros). The equity ratio of the Group increased to 63.9 percent at
end 2009 due to the high net income (previous year: 33.5 percent). The
liquidity at the year-end 2009 amounted to 44.2 million euros in the continued
operations (previous year: 36.7 million euros). “We have improved our
liquidity situation extraordinarily compared to the previous year,´´ said Mohr.
Continued operations (previous year without TPK)
in million euros
| |2009 |2008 |
|Group revenues |139.0 |198.1 |
|Total operating |145.1 |208.3 |
|performance | | |
|EBITDA |14.7 |31.4 |
|EBIT |2.5 |-0.6 |
|EBIT margin (in |1.7 |-0.3 |
|percent) | | |
|Earnings associated |50.9 |-10.8 |
|companies | | |
|EBT * |45.3 |-25.2 |
|Net income * |46.4 |-33.1 |
|Cash flow from |20.6 |37.3 |
|operating activities| | |
|Investments |9.8 |14.5 |
|Employees (as of |4,505 |4,861 |
|31.12.) | | |
|Earnings per share |0.91 |-0.97 |
|(in euros) | | |
|Dividend |0 |0 |
|Year-end share price|3.49 |0.51 |
|Equity |159.2 |100.6 |
|Equity ratio (in |63.9 |33.5 |
|percent) | | |
* including TPK-effect
* * *
Company Profile Balda AG
The Balda Group develops and produces complete plastic assemblies, electronic
products and products for the medical industry. The customers of Balda are
leaders in business from the mobile, entertainment and electronic
communications as well as pharmaceutical and medical technology markets.
The group has an international position with product sites in China, Malaysia,
India and Germany. A subsidiary in the United States serves North American
customers in product design and development. As part of a shareholding in a
leading manufacturer of touch screens in China, Balda participates in the
dynamic touch screen displays market.
* * *
This corporate news announcement includes ‘forward-looking statements’ which
are based on the current expectations of the management of Balda. They are
subject to risks and uncertainty because they relate to 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
does not undertake any obligation to update publicly or revise forward-looking
statements except to the extent legally required.
This corporate news announcement is not an offer of securities for sale or a
solicitation of an offer to purchase securities in the United States or
elsewhere. The shares in Balda AG (the ‘Shares’) may not be offered or sold in
the United States or to or for the account or benefit of U.S. persons (as such
term is defined in Regulation S under the U.S. Securities Act of 1933, as
amended (the ‘Securities Act’) unless registered under the Securities Act or
pursuant to an exemption from such registration. The Shares have not been and
will not be registered under the Securities Act.
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