EANS-News: Balda AG
Earnings situation in 2009 was positive and exceeded
expectations/2010 is on a course of growth
Bad Oeynhausen (euro adhoc) -
Corporate news transmitted by euro adhoc. The issuer/originator is solely responsible for the content of this announcement.
Financial Figures/Balance Sheet
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
million euros) 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
euros) Forecast 2010: 10 to 15 percent sales volume with at least a stable EBIT
and clearly positive EBTBad 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,´´ said Mohr.
``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,´´ said Mohr.
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,´´ said Mohr.
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 expectations."
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.
Comfortable funding 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 year- 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.
Figures
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.
end of announcement euro adhoc
Further inquiry note:
Clas Röhl
Tel.: +49 (0) 5734 922-2728
croehl@balda.de
Branche: Semiconductors & active components
ISIN: DE0005215107
WKN: 521510
Index: CDAX, Prime All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
München / free trade