EANS-Adhoc: Balda AG: Operative results in the first half of 2011 positive / MobileCom segment part of the discontinued business division
04.08.2011 – 08:03
-------------------------------------------------------------------------------- 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. -------------------------------------------------------------------------------- 04.08.2011 Balda AG: Operative results in the first half of 2011 positive / MobileCom segment part of the discontinued business division MobileCom segment: Intensified search for a Joint Venture partner / shareholding already declared as a discontinued business division Sales revenues in the first half of the year in continued business divisions grow by 0.8 million Euros to 28.9 million Euros (same period in the previous year: 28.1 million Euros) Operating profit (EBIT) increases by 0.5 million Euros to 1.1 million Euros (same period in the previous year: 0.6 million Euros) Pre-tax profits (EBT) rise by 1.5 million Euros thanks to positive financial earnings, taking them to 10.4 million Euros (same period in the previous year: 8.9 million Euros) Bad Oeynhausen, 4th August 2011 - The company management of Balda AG, listed on the Frankfurt Stock Exchange SDax index, firms up its decision from the first half year to seek a strong Joint Venture partner. Despite repeated restructuring attempts, it was not possible for the segment to achieve the desired results in the volatile and highly competitive mobile telephone market. The MobileCom segment is already included in the discontinued business division in the half yearly report for 2011 because it is assumed that the control of the shares will not remain with Balda. Business development The Balda Group generated sales of 28.9 million Euros in the first half of 2011 in continued operations, compared to 28.1 million Euros in the same period during the previous year. This is an increase of 0.8 million Euros or 2.8 percent in comparison to the first six months of 2010. The operating profit for the Group rose at the end of the first half year to 1.1 million Euros in comparison with a figure of 0.6 million Euros in the same period during the previous year. The Balda Group achieved positive financial earnings of 9.3 million Euros in the first half of 2011 following on from 8.2 million Euros in the previous year. The increase was a result of a decrease in interest payments due to the elimination of convertible participation rights, and moreover of currency gains amounting to 9.1 million Euros arising from internal financing. The profits before tax (EBT) increased as a result of the positive financial results to 10.4 million Euros (previous year: 8.9 million Euros). The half yearly surplus in 2011 in the continued business divisions was 10.2 million Euros (previous year: 9.2 million Euros). Overall, the Balda Group recorded a consolidated loss after the first six months of the current financial year - continued and discontinued business divisions - of 15.4 million Euros compared to a profit of 5.1 million Euros in the same period of the previous year. The loss in the first half year for the discontinued business division stood at 25.6 million Euros (previous year: Minus 4.1 million Euros). This includes special accounting devaluations for the companies in the MobileCom segment amounting to 19.9 million Euros and the loss resulting from operative business in the first half year amounting to 4.2 million Euros, as well as payments totalling 1.5 million Euros as a result of interest and tax dues. The undiluted profit per share during the reporting period was minus 26.1 cents, on the basis of 58,891 million shares (status 30th June 2011). In the same period during the previous year the earnings per share based on 54,157 million shares were 9.9 cents. Positive development of operational Group segments The positive commercial development of the continued business divisions, Electronic Products and Medical, during the first half of 2011 confirms Balda´s chosen strategy. During the second quarter of 2011 the sales rose slightly, to 15.5 million Euros following on from 13.4 million Euros in the first quarter. In light of the effects of the disaster in Japan, which are only now being felt by the Group, this is a satisfactory development. The sales in the Electronic Products segment declined from 14.9 million Euros during the first half of 2010 to 12.5 million Euros in the same period of 2011. The cause of this development was the faltering supply of electronic components as a result of the natural disaster in Japan. However, despite the drop in sales, the segment succeeded in reducing the operating losses by 1.0 million Euros to 1.5 million Euros (previous year: Minus 2.5 million Euros). Strict cost management and targeted improvements in production processes led to this improvement in results. The Medical segment recorded sales of 16.5 million Euros, and thereby a significant increase in comparison to the previous year's figure of 13.1 million Euros. The operating profit for the segment stood at 1.3 million Euros after the first six months (previous year: 1.1 million Euros). The Medical division is on target. Liquid funds reducing On the 30th June 2011 the Balda Group´s inventory of liquid funds stood at around 42.3 million Euros (first half year of 2010: 49.4 million Euros). In the continued business divisions the liquid funds stood at 36.4 million Euros because 5.9 million Euros were reapportioned on the reporting date from the liquid funds item to Assets held for sale and liabilities. Significant rise in operating cash flow The cause for the positive operating cash flow development was primarily the reduction in Net Working Capital (current assets excluding liquid funds less current liabilities excluding bank liabilities). In total, the inflow of funds from the ongoing business activities of the Balda Group rose during the first half of 2011 to 7.7 million Euros. In the previous year the cash flow stood at minus 6.1 million Euros. Equity increased The Group´s equity increased by 99.2 million Euros to 849.0 million Euros (reference date 2010: 749.7 million Euros). The revaluation of the TPK shares on the 30th June 2011 overcompensated for the negative effect due to exchange rate discrepancies and the negative Group result. The equity ratio on the 30th June 2011 stood at 94.1 percent (31st December 2010: 92.5 percent). No sale yet of TPK shares According to the regulations of the Taiwanese Stock Exchange, the sale of 50 percent of the shares held in TPK would have been permissible on the 13th July 2011, following the expiration of the holding period. Due to the recent volatile market conditions, with severe stock price fluctuations, Balda has not issued any sale order to date. However, the company continues to coordinate closely with banks, consultants and TPK regarding selling the TPK shares. Acquisition With regards to the planned acquisition in the medical segment, the prerequisites for a potential takeover are now in place. Outlook for 2011 For the financial year 2011 the Board of Directors is forecasting sales revenues of between 70 and 80 million Euros and a slightly positive operating profit (EBIT). * * * 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: www.balda.de * * * 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: Contact: Balda AG, Clas Röhl, Telephone: (05734) 922 - 2728, Fax: (05734) 922 - 2604, E-mail: croehl@balda.de, Internet: www.balda.de end of announcement euro adhoc -------------------------------------------------------------------------------- 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: http://www.balda.de 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