Balda AG

EANS-Adhoc: Balda AG third quarter results: best quarter for sales in 2010 with negative EBIT and positive EBT

@@start.t1@@--------------------------------------------------------------------------------   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. --------------------------------------------------------------------------------@@end@@

quarterly report


Balda AG third quarter results: best quarter for sales  in  2010   with  negative EBIT and positive EBT

• Surplus for combined group at 6.9 million euros (previous year:
11.2 million      euros)  • Sales revenues at 108.6 million euros
(previous year: 102.5 million euros)  • 3rd quarter best for revenues
at 45.2  million  euros  (previous  year: 36.3      million euros)  •
EBIT at minus 3.6 million euros (previous year: plus 3.8 million
euros)  • EBT at 7.8 million euros (previous year: 8.8 million euros)
• New plant in Beijing in operation  • Samsung, Panasonic and Sanyo
new MobileCom customers  • Successful initial public offering of
Balda's shareholding TPK  • Downward adjustment of forecast for 2010

Bad Oeynhausen, 4 November 2010 - The Frankfurt SDax  listed  company Balda  AG achieved sales revenue of 108.6 million  euros  (previous   year:  102.5  million euros) in its continued operations in the first nine  months  of  2010.  In  the third quarter the Group generated its best quarterly result  for  sales  in  the 2010 financial year with revenues of 45.2 million  euros  (previous  year:  36.3 million euros). Sales in the MobileCom division were below expectations.

Mixed results

The Group´s operative result (EBIT) fell to minus 3.6  million  euros (previous year: plus 3.8 million euros). In the first nine months of 2010  the  EBIT  was affected by one-off expenditure of 3.0 million euros on the  reorganisation  and continued high pressure on margins in the MobileCom segment.  In  all  divisions the EBIT was burdened by development  activities  for  2011  and  cost-intensive start-up phases for the production of new  products.  The  EBIT  in  the   second quarter was minus 1.5 million euros after plus 1.3 million   euros  in  the  same period for the  previous year.

The result of associated companies with earnings from the TPK   shareholding  was 14.3 million euros  (previous  year:  10.7  million euros).  TPK  Holding  Ltd. successfully completed its initial public offering on 29 October with the  issue of around 224 million shares. Its share price after the  first  day  of  trading was 505 Taiwanese dollars (around 12 euros). After the latest  capital  increase Balda´s stake in TPK is 16.1 percent.

With the profit contribution of TPK, the  EBT  after  nine  months   of  2010  is positive at 7.8 million euros (previous year: 8.8 million euros).  The  combined group´s surplus after nine months (continued and  discontinued  operations)  was 6.9 million euros (previous year: 11.2  million  euros).  The  combined  group´s earnings per share reached 13.0 eurocents  after  21.5  eurocents  in the  same period for the previous year.

Development of the divisions

In the third quarter of 2010 the results achieved by  the  Balda   Group´s  three divisions were mixed. The sales volume in the MobileCom business  area  fell  as compared to last year´s quarter. Order call-offs planned with customers did  not occur in sufficient volume. The pressure on  prices    continued.  This  burdened the earnings situation. The EBIT came under additional pressure from  the sales mix with a high share of low-margin bought-in electronic   components  and costintensive production start-ups.

The Electronic Products  division  significantly  increased  its   sales  revenue compared to the previous year as planned. The   operative  result  in  the  third quarter was nearly break-even. In addition to the  expensive  production  start- ups in the second quarter, expensive bought-in  electronic  components  squeezed the margins in Malaysia as well.

The Medical division´s revenue and EBIT were as planned.

@@start.t2@@|In mio.  |Sales                  |EBIT                    |
|euros      |                          |                          |
|              |Nine      |Nine      |Nine      |Nine      |
|              |months  |months  |months  |months  |
|              |2010      |2009      |2010      |2009      |
|MobileCom|62.1      |66.5      |-5.6      |8.2        |
|Electro- |26.1      |11.9      |-2.6      |-1.6      |
|nic         |            |            |            |            |
|Products |            |            |            |            |
|Medical  |20.3      |24.1      |1.6        |3.5        |

Financial situation

As of 30 September 2010 the Balda  Group  had  liquid  assets  of  55.3  million euros. Balda can finance its operational business from its own resources.

Equity increased

The Group's equity increased as of the  balance  sheet  date  to  180.4  million euros (31 December 2009:  159.2  million  euros).  The  equity  ratio  was  63.3 percent at the end of  the  third  quarter  of  2010  (year-end  of  2009:  63.9 percent).


The Balda Group is expecting sales in  the  MobileCom  division  in  the  fourth quarter to remain at the same level of the third quarter or  possibly  to  fall. It is expected that the EBIT in the MobileCom division will be reduced  further. The Group does expect an improvement in 2011 with new customers. In addition to Samsung, Panasonic and Sanyo are also among the new clients for 2011. The state-of-the-art plant in Beijing  with  its  new  technologies  will  establish cost effective processes and thus strengthen the competitiveness.

The Electronic Products division will achieve its sales  target,  but  its  EBIT will remain negative for 2010. For 2011 a break-even  result  is  expected.  The Medical division will achieve its sales target and its expected  positive  EBIT. In 2011 Medical will gain revenue in the low double-digit  percentage-range  and also increase its EBIT.

On the basis of the final figures for the three-quarter period, the Balda Group revises its last forecast for the 2010 financial year issued in October 2010. The company is expecting sales revenue to be below the forecasted range and a negative EBIT in the single-digit million-range. The EBT will be positive. This forecast for the EBIT and EBT is valid unless extraordinary effects occur.


Table with key figures for the first nine months of 2010@@end@@

The Balda Group at a glance (continued operations) In mio. euros

@@start.t3@@|                  |Nine    |Nine    |Change  |3rd      |2nd      |
|                  |months |months |in         |quarter|quarter|
|                  |2010 3 |2009 3 |percent |          |          |
|                  |          |          |            |2010 3 |2010 3 |
|Sales          |108.5  |102.5  |6.0        |45.2    |37.4    |
|                  |          |          |            |          |          |
|MobileCom    |62.1    |66.5    |- 6.6    |26.8    |21.1    |
|Medical        |20.3    |24.1    |- 15.8  |7.2      |6.9      |
|Electronic  |26.1    |11.9    |119.3    |11.2    |9.4      |
|Products      |          |          |            |          |          |
|Total output|122.5  |110.3  |11.1      |48.6    |45.2    |
|EBIT            |- 3.6  |3.8      |            |- 1.5  |0.2      |
|EBIT margin |- 2.9  |3.4      |            |- 3.2  |0.4      |
|(in %)         |          |          |            |          |          |
|Earnings      |7.8      |8.8      |- 11.4  |2.0      |3.7      |
|before tax  |          |          |            |          |          |
|(EBT)          |          |          |            |          |          |
|Earnings      |7.5      |9.1      |- 17.6  |1.8      |3.9      |
|continued    |          |          |            |          |          |
|operations  |          |          |            |          |          |
|Earnings per|14.2    |17.7    |- 19.8  |3.3      |7.4      |
|share (in    |          |          |            |          |          |
|cents) 1      |          |          |            |          |          |
|Number of    |2,951  |6,898  |- 57.2  |2,951  |3,731  |
|employees 2 |          |          |            |          |          |

1) Number shares as of the reporting date in millions 54.157 (previous year's     reporting date: 54.157) 2) Number of employees including agency staff, trainees and temporary     personnel - only continued operations 3) Including Balda Medical GmbH & Co. KG and Balda Grundstücks-Vermietungs     GmbH & Co. KG

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:, Internet:

                                                            * * *

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.@@end@@

@@start.t4@@end of announcement                                                 euro adhoc

ots Originaltext: Balda AG
Im Internet recherchierbar:

Further inquiry note:
Clas Röhl
Tel.: +49 (0) 5734 922-2728

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

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