Baldwin Reports Results for Q3 of FY'07
4/26/2007
Shelton, CT, April 26, 2007 -- Baldwin Technology Company, Inc. (AMEX: BLD), a leading global manufacturer of printing press accessories and control equipment reported today net sales of $53,211,000 for the third fiscal quarter ended March 31, 2007, compared with net sales of $45,447,000 for the third quarter last year, an increase of $7,764,000 or 17%. The increase in net sales was attributable to the acquisition of Oxy-Dry Corporation and the favorable impact of currency translation of $1,911,000.
Net income for the third quarter was $1,296,000 or $0.09 per basic share and $0.08 per diluted share, compared to net income of $1,745,000, or $0.12 per basic and $0.11 per diluted share for the comparable period a year earlier. Organizational restructuring expenses and increased interest expense due to higher debt levels as well as a higher tax rate than in the prior year’s comparable quarter, offset somewhat by favorable currency effects, were the primary causes of the difference.
Net sales for the nine months ended March 31, 2007 were $144,586,000, compared to $131,918,000 for the prior year’s nine month period. The favorable impact of currency translation for the nine months was $4,479,000.
Net income for the nine months ended March 31, 2007 was $3,024,000 or $0.20 per basic and $0.19 per diluted share, compared to $4,321,000 or $0.29 and $0.28 per basic and diluted share, respectively, for the same period in 2006. The difference in net income between the two periods arose from a slight decrease in gross margin for the current period, combined with costs incurred for organizational restructuring and increased interest expense associated with higher debt levels.
The Company’s backlog at March 31, 2007 was $63,930,000, compared to $58,614,000 at December 31, 2006. Orders placed in the third quarter were $58,527,000, compared to $45,908,000 for the previous quarter, an increase of 27%.
Vice President and CFO John P. Jordan commented, “Overall, we are pleased with our performance on the top line this quarter and with the potential of the newly-acquired Oxy-Dry entities. Although operating expenses increased by $2,132,000 over last year’s third quarter due primarily to the addition of Oxy-Dry, the effect of strong currencies abroad, and the transition undertaken with both the Company’s CFO position and its public accounting firm, we will remain vigilant in controlling operating costs to maximize the return from good top line performance.” Jordan further commented, “Working capital increased with the addition of Oxy-Dry, and the Baldwin Operations Team has instituted processes to manage working capital to best-practice levels.”
President and COO Karl Puehringer commented, “The integration of the Oxy-Dry companies acquired in November 2006 is proceeding on plan, and we fully expect to realize the savings and synergies we originally anticipated. We are also very pleased with the continuing positive response from our customers.”
Puehringer added, “In addition, during the fourth quarter, we were pleased to report that, based on a successful alliance started in March of 2005, we acquired Swiss-based Hildebrand Systeme. This acquisition adds web cleaning technology to our product portfolio and further strengthens Baldwin’s position as the market leader in cleaning applications, with well-established interfaces at essentially every major press manufacturer in the world.”
Baldwin will review its third quarter results and discuss its business outlook during a conference call today beginning at 11 a.m. EDT. To participate, call (888) 655-9181. The toll dial-in number is (210) 839-8504. The passcode is “Baldwin Q3.” Interested investors are encouraged to log onto http://www.vcall.com/IC/CEPage.asp?ID=115978, and either participate in the call or access the webcast and replay of the call. The replay will be available from one hour after the call through Thursday, May 3, 2007, toll free at (866) 443-1213 and toll (203) 369-1091.
About Baldwin
Baldwin Technology Company, Inc. is a leading global manufacturer of press accessories and controls for the commercial and newspaper printing industries. Baldwin offers its customers a broad range of market-leading technologies, products and systems that enhance the quality of printed products and improve the economic and environmental efficiency of printing presses. Headquartered in Shelton, Ct., the company has sales and service centers, product development and manufacturing operations in the Americas, Asia and Europe. Baldwin’s technology and products include cleaning systems, fluid management and ink control systems, web press protection systems and drying systems. For more information, visit http://www.baldwintech.com.
Investors may contact Frank Hawkins or Julie Marshall at (305) 451-1888 or e-mail info@hawkassociates.com. For an online investor relations kit, visit http://www.hawkassociates.com. An investor profile about Baldwin Technology may be found at http://www.hawkassociates.com/bldprofile.aspx.
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