EANS-News: Balda AG
Balda AG sets the course for Group profitability
04.08.2011 – 15:32
-------------------------------------------------------------------------------- Corporate news transmitted by euro adhoc. The issuer/originator is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- 6-month report Bad Oeynhausen (euro adhoc) - Balda AG sets the course for Group profitability Balda no longer listing the MobileCom segment in the continued business divisions / majority shareholding in the MobileCom segment set for takeover by Joint Venture partner / positive operating profit in the continued business divisions / sale of the TPK shares yet to commence Bad Oeynhausen, 4th August 2011 - Balda AG, listed on the Frankfurt Stock Exchange, is in the midst of a vital decision-making phase. The Sole Director, Rainer Mohr, announced in a telephone conference in front of the press on the occasion of the publication of the report for the first half of 2011, that the "Balda Group has set the course for a profitable Group structure, although the process is yet to be completed". Profitable operative basis Balda is assuming that it will lose control of the MobileCom segment within the framework of its search for a Joint Venture partner. In this way Balda will eliminate its loss maker in the immediate future. The break-even point had previously been reached by the Group in the two existing segments comprising the continued operations, and was exceeded in the first half of 2011 with consolidated operating Group profits of 1.1 million Euros attained by the Electronic Products and Medical segments. Mohr is convinced that the Group's active operational segments constitute an excellent basis for further growth. The prerequisites for the establishment of a new Group structure have now been met, according to the Sole Director. Planned acquisition Mohr went further on the intended acquisition: "We are on target. The prerequisites for a possible acquisition are in place. We will be providing information on further developments promptly." Planned sale of TPK shares With respect to the planned sale of the TPK shares Mohr asserted: "Balda AG has been cooperating on an ongoing basis with banks, consultants and TPK in this regard. However, we have not yet commenced the issuing of a formal notification of sale of the TPK shares, as required by the Taiwanese Stock Exchange." In light of the recently volatile market conditions with severe stock price fluctuations, Balda intends to act to protect the interests of its shareholders in selling at a favourable share price to preserve value. "As a result of this, a definitive sale date for the TPK shares cannot be specified in the opinion of the Board of Directors and the Supervisory Board of Balda AG. However, the management of Balda AG is constantly assessing the market conditions and the resultant options" stated Mohr. In this context, the Board of Directors once again reiterated that the Balda Group is almost entirely debt-free and, with liquid funds of 42.3 million Euros, has an above-average solid financial base. "We are able to look with confidence to the future" emphasised Mohr. * * * 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 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. * * * Further inquiry note: Balda AG, Clas Röhl, Tel: (05734) 922 - 2728, Fax: (05734) 922 - 2604, E-Mail: croehl@balda.de, Internet: www.balda.de * * * This corporate news 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 corporate news 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: Clas Röhl Tel.: +49 (0) 5734 922-2728 croehl@balda.de 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: 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