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EANS-News: Balda AG
Balda: Key strategic measures and high consolidated profit
in the first quarter of 2012
-------------------------------------------------------------------------------- Corporate news transmitted by euro adhoc. The issuer/originator is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- quarterly report 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 schedule. 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 sustainable dividends. 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 Frank Elsner Kommunikation für Unternehmen GmbH Tel.: +49 - 54 04 - 91 92 0 Fax: +49 - 54 04 - 91 92 29 Mail: firstname.lastname@example.org end of announcement euro adhoc -------------------------------------------------------------------------------- company: Balda AG Bergkirchener Str. 228 D-32549 Bad Oeynhausen phone: +49 (0) 5734 9 22-0 FAX: +49 (0) 5734 922-2747 mail: email@example.com WWW: http://www.balda.de sector: Semiconductors & active components ISIN: DE0005215107 indexes: CDAX, Prime All Share stockmarkets: free trade: Berlin, München, Hamburg, Düsseldorf, Stuttgart, regulated dealing/prime standard: Frankfurt language: English