EANS-News: Balda achieves earnings turnaround in its operating business in H1
2012/2013 (with document)
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quarterly report/6-month report
Bad Oeynhausen (euro adhoc) - Balda achieves earnings turnaround in its
operating business in H1 2012/2013
- Consolidated EBITDA before extraordinary items at EUR 2.5 million
- High half-year profit of EUR 11.9 million on the strength of net finance
income
- Consolidated revenue down year-on-year due to high prior-year basis and
the difficult market environment for electronics products
- Significant progress in the implementation of the growth strategy through
the acquisition of US companies C. Brewer and HK Plastics Engineering
- Positive EBITDA and sizable consolidated profit for the year as a whole
also expected
Bad Oeynhausen, 20 February 2013 -The Balda Group today announced that it
turned its operating result around in the first half (1 July to 31 December
2012) of the 2012/2013 financial year. After adjusting for extraordinary items,
the earnings before interest, taxes, depreciation and amortization (EBITDA) of
the specialist in advanced plastics solutions in the first six months amounted
to EUR 2.5 million, up from EUR -3.9 million in the comparative period, July to
December 2011. After taxes, positive currency effects in net finance income
meant the Group posted a half-yearly profit of EUR 11.9 million (prior-year
period: EUR -23.8 million).
Dominik Müser, Chief Executive Officer of Balda AG: "In the first half of the
year, we not only turned earnings around, thereby achieving one of our main
goals, but by acquiring two well-known US plastics specialists, C. Brewer and
HK Plastics Engineering, at the end of December, we also took important steps
towards the necessary internationalization of our businesses and the expansion
of our product and customer base. Implementation of the Group's published
growth strategy is therefore going entirely according to plan and Balda is on
the right track strategically. Our share price performance recently shows that
the capital markets are now beginning to acknowledge the positive trend at
Balda as well."
US companies included in segment reporting
Following the integration of C. Brewer Co. and HK Plastics Engineering, Inc.,
the Balda Group reported on the two operating segments Balda Medical and Balda
Technical in the half-yearly report for the first time. The existing Balda
Medical segment has been expanded to include the respective healthcare
activities of the two acquired companies. The previous Electronics Products
operating segment was renamed Balda Technical. In addition to the site at Ipoh,
Malaysia, it will also comprise two sites of C. Brewer in California, USA. This
segment develops, produces and markets plastics solutions for high-quality
optics, electronics and automotive applications.
The two US companies were consolidated as of 31 December 2012. As a
consequence, they were included in the statement of financial position at this
reporting date but do not yet have an effect on the income statement for the
first half of the 2012/2013 financial year.
Key revenues and earnings of the Balda Group for the first half of 2012/2013
- Consolidated revenues in the period from July to December 2012 stood at
EUR 27.9 million and were therefore 25.3 percent below the figure for the
prior-year period (EUR 37.4 million). The decline is solely due to the
exceptionally high comparative basis because extraordinarily high revenue
for tools and equipment was recognized in the Balda Medical segment in the
prior-year period. A generally weaker economic climate dampened demand for
electronics products in the Balda Technical segment in the first six
months of 2012/2013.
- The Group posted adjusted half-yearly earnings before interest, taxes,
depreciation and amortization (EBITDA) of EUR 2.5 million (prior-year
period: EUR -3.9 million). The figure for the first six months of
2012/2013 was adjusted for extraordinary items, primarily expenses
incurred in connection with the extensive M&S processes involved in the
buy-and-build strategy (e.g. transaction costs, due diligence expenses).
- EBITDA including extraordinary items totaled EUR 0.5 million after six
months (prior-year period: EUR -5.4 million). Balda's earnings were
boosted by significant savings in general costs as a consequence of leaner
Group structures and the successful restructuring of the electronics
business at its production facility in Malaysia.
- Net finance income totaled EUR 13.1 million after six months (prior-year
period: EUR -4.1 million). Alongside interest income from the Group's
substantial cash balances, positive valuation effects from the translation
of currency items such as receivables and cash at foreign subsidiaries
also made themselves felt.
- Comprehensive income for the Group after six months amounted to EUR 11.9
million. The figure for the prior-year period (EUR -23.8 million) still
included the loss incurred from the MobileCom operation, which was
discontinued as of 1 December 2011.
- Comprehensive income corresponds to earnings per share (basic EPS and
diluted EPS) of EUR 0.20 (prior-year period: EUR -0.40).
Segment performance
- At EUR 15.9 million, 2012/2013 revenues of the Balda Medical segment after
six months were 32.1 percent lower than the figure for the prior-year
period (EUR 23.4 million). The decline is solely due to the fact that
extraordinarily high project-related tools and equipment sales were
recorded in the prior-year period. In contrast, product sales from ongoing
projects increased substantially year-on-year in the first six months of
2012/2013. After six months, EBITDA stood at EUR 2.0 million (prior-year
period: EUR 2.6 million).
- The Balda Technical segment posted sales of EUR 12.1 million for the first
six months. This decrease of 14.0 percent compared with the prior-year
period in 2011 (EUR 14.0 million) is largely attributable to sliding
demand for entertainment and electronic products since mid-2012. The
restructuring process begun at the Malaysian site in early 2012 was
completed successfully according to plan in the reporting period,
producing significant process improvements and cost reductions. Segment
EBITDA amounted to EUR 0.1 million, following EUR -2.8 million in the
period July to December 2011.
- The Balda Central Services segment, which mainly comprises the holding
company functions of Balda AG, benefited from the streamlining of the
Group's structures and savings in other costs (e.g. for the use of service
providers). After the first half-year, this raised EBITDA to EUR -1.6
million, compared with EUR -5.2 million in the same period in 2011
(excluding expenses attributable to the former MobileCom segment).
Adjusted outlook for the full 2012/2013 year
The Management Board's primary objective remains unchanged: to guide the Balda
Group towards growth and value enhancement. In the medium term, efforts will
focus on achieving consolidated sales of EUR 150-200 million. Significant
progress towards this objective was made in the first six months of 2012/2013.
The Management Board has adjusted its guidance for the full 2012/2013 year.
Both US companies are included in the consolidated financial statements from 31
December 2012 and will contribute positive earnings in the second half of the
year.
Assuming that no unforeseeable negative events occur, and on the basis of the
current portfolio, the Management Board expects the following for the full
2012/2013 financial year:
- consolidated sales of EUR 75-80 million; and
- a distinctly positive EBITDA both before and after extraordinary items.
The Group's profitability before and after taxes will be strongly boosted by
positive net finance income and the income from the sale of the remaining
shares in the former investment TPK Holding as completed in January 2013. The
Group is therefore expected to post a substantial consolidated profit.
Notes to the editors:
The Balda Group's interim financial statements as of 31 December 2012 can be
downloaded from the company's website at www.balda.de.
Contact:
Frank Elsner
Frank Elsner Kommunikation für Unternehmen GmbH
Tel.: +49 - 54 04 - 91 92 0
Fax: +49 - 54 04 - 91 92 29
Mail:office@elsner-kommunikation.de
The Balda Group at a glance
|in EUR million |1.7. - |1.7.- |1.10. - |1.10.- |
| |31.12 2012|31.12. 2011|31.12 2012 |31.12. 2011|
|Revenues |27.9 |37.4 |14.0 |22.0 |
|of which Balda Medical |15.9 |23.4 |7.8 |15.5 |
|of which Balda Technical |12.1 |14.0 |6.3 |6.5 |
|Gross revenue |33.5 |36.5 |19.4 |20.5 |
|EBITDA before extraordinary |2.5 |-3.9 |1.6 |-3.8 |
|items | | | | |
|EBITDA margin in % |7.5 |-10.7 |8.2 |-18.5 |
|before extraordinary items* | | | | |
|EBITDA after extraordinary |0.5 |-5.4 |-0.5 |-5.2 |
|items |2.0 |2.6 |0.9 |1.8 |
|of which Balda Medical |0.1 |-2.8 |-0.2 |-3.1 |
|of which Balda Technical |-1.6 |-5.2 |-1.2 |-3.9 |
|of which Balda Central | | | | |
|Services** | | | | |
|EBIT before extraordinary |0.7 |-5.7 |0.7 |-4.7 |
|items* | | | | |
|EBIT in % | 2.1 |-15.7 |3.7 |-22.9 |
|margin before extraordinary | | | | |
|items | | | | |
|EBIT after extraordinary items |-1.2 |-7.2 |-1.2 |-6.1 |
|Net finance income |13.1 |-4.1 |6.5 |-0.4 |
|Earnings before taxes |11.9 |-11.3 |5.2 |-6.5 |
|Net profit/loss from continuing| | | | |
|operations *** |11.9 |-13.3 |5.1 |-9.6 |
|Comprehensive income after |11.9 |-23.8 |5.1 |-10.7 |
|taxes **** | | | | |
|Earnings per share (EUR) |0.20 |-0.40 |0.09 |-0.18 |
| | | | | |
| |31.12.2012|30.6.2012 | | |
|Total assets |392.5 |473.4 | | |
|Equity |355.9 |450.5 | | |
|Equity ratio (%) | 90.7 | 95.2 | | |
| | | | | |
|Employees (number at reporting |1,774 |1,273 | | |
|date) |***** | | | |
* The figures for 2012 have been adjusted for non-capitalizable non-recurring
items for M&A processes and the modernization of Group IT
** Comparative period 2011: excluding expenses attributable to the former
MobileCom segment
*** Comparative period 2011: excluding former MobileCom segment (sold as of
1.12.2011)
**** Comparative period 2011: including net profit/loss from the discontinued
MobileCom operation
***** of which 741 at the US companies acquired as of 31.12.2012
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Further inquiry note:
Kontakt/Ansprechpartner:
Frank Elsner
Frank Elsner Kommunikation für Unternehmen GmbH
Tel.: +49 - 54 04 - 91 92 0
Fax: +49 - 54 04 - 91 92 29
Mail:office@elsner-kommunikation.de
end of announcement euro adhoc
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company: Balda Aktiengesellschaft
Bergkirchener Str. 228
D-32549 Bad Oeynhausen
phone: +49 (0) 5734 9 22-0
FAX: +49 (0) 5734 922-2604
mail: info@balda.de
WWW: http://www.balda.de
sector: Semiconductors & active components
ISIN: DE0005215107
indexes: SDAX, Prime All Share
stockmarkets: free trade: Berlin, München, Hamburg, Düsseldorf, Stuttgart,
regulated dealing/prime standard: Frankfurt
language: English