Binder+Co 2010 progressing well: sales revenues and EBIT above the level of last year, order intake up by a notable 39%
Gleisdorf -- With sales revenues of EUR 63.25 million and EBIT of EUR 7.22 million, in 2010 we not only surpassed the figures for the preceding year, but also returned to our pre-crisis levels. Order intake in the second half-year even returned to the record level of 2008 and therefore we can be genuinely satisfied.” Karl Grabner, member of the Binder+Co Management Board.
Generally difficult and unsettled market environment
The economic environment for Binder+Co’s mechanical engineering business in 2010 presented an extremely inconsistent picture. While Environment Technology picked up markedly and demand in the Packaging Technology Segment remained largely stable, the Processing Technology Segment was characterized by extreme volatility caused by major demand fluctuations in the systems and plant business.
Sales revenues marginally higher than in 2009, EBIT consolidated further
In spite of relatively low order backlog at the beginning of the year, Binder+Co sales revenues in 2010 amounted to EUR 63.25 million and were therefore slightly up on those of the preceding year (2009: EUR 63.13 million). The positive mix of large volume system and plant business and solid single machine and spare part business played a major role in this regard and ensured constant good use of production capacity throughout 2010. At EUR 7.22 million, EBIT was above the EUR 6.66 million of the previous year and also just over the previous record figure of EUR 7.2 million achieved in 2008.
Particularly satisfactory development in the Environmental Technology Segment
In 2010, the Processing Technology Segment, which specializes in drying, screening and sorting machinery for the construction materials and stone and earth industries, was characterized by single machine business offering solid margins. In total, order intake in this segment amounted to EUR 26.32 million. Segment sales revenues in the past financial year totalled EUR 28.85 million (45.6% of total sales revenues) and the resultant EBIT contribution amounted to EUR 2.20 million.
Demand in the Environmental Technology Segment, which focuses on sorting machines for glass and plastics recycling, developed in a particularly satisfactory manner during 2010. Binder+Co again succeeded in acquiring interesting international projects with an emphasis on western Europe and by the end of the year had accumulated new order intakes totalling EUR 32.41 million. The newly developed sensor units for the identification of the lead content in cullet and the sorting of heat-resistant special glass met with immediate market acceptance and thus secured Binder+Co’s technological market leadership. With sales revenues of EUR 24.13 million, in 2010 the Environmental Technology Segment provided 38.2% of total sales revenues. It also furnished an EBIT contribution of EUR 4.07 million (56.4% of total EBIT).
The Packaging Technology Segment, which is managed by the independent subsidiary Statec Binder GmbH, produces high-performance machinery for the open mouth bagging of free-flowing bulk goods such as fertilizers, plastic granulate, seeds, foods and feedstuffs or salts. In spite of the difficult global market situation, the Segment was able to bring in worldwide orders totalling EUR 10.61 million, which related mainly to single machines and small system projects. Segment sales revenues in the past financial year amounted to EUR 10.27 million (16.2% of total sales revenues), while the EBIT contribution totalled EUR 0.95 million.
Export business continues to be of major significance
The Group’s international sales revenues during the period under review provided 87.4% (2009: 85.0%) of total sales revenues, which underlined the massive importance of export business. With a share of sales revenues of 49.4%, western Europe (excluding Austria) remained the largest sales market, followed by Asia/Australia with 17.2%. Central and eastern Europe (CEE and CIS) furnished 12.3%, Africa 5.5% and the Americas 3.0% of sales revenues.
A marked revival in demand
Clearly weakened by the worldwide economic crisis, Binder+Co started 2010 with an order backlog of EUR 17.96 million. However, the second quarter already demonstrated a marked recovery in order intake, which continued in the third and fourth quarters. All in all, order intake in 2010 amounted to EUR 69.34 million, which was EUR 19.51 million or roughly 39% above the values of the preceding year (2009: EUR 49.83 million) and thus demonstrated potential for future growth. As at December 31, 2010, the Binder+Co Group had secured an order backlog of EUR 24.01 million, a figure that also includes an order volume of EUR 6.07 million for 2012 and subsequent years.
As economic development in Europe has a decisive influence of Binder+Co growth, the forecast improvement in the general economic situation and stable machine business in the EU should again provide a solid basis for Group performance in the coming years. At the same time, due to the adoption of an expansion course, overseas markets are set to make disproportionate gains in importance. In particular, this applies to the ambitious BRIC states, which hold interesting potential for Binder+Co and promise good sales prospects for the company’s machinery. From a current perspective, the Binder+Co management expects renewed growth in sales revenues and EBIT for 2011.
The Binder+Co share shows a solid price trend
During 2010, the price of the Binder+Co share performed better than the general market trend demonstrated by the ATX. Starting from a level of EUR 11.10 at the beginning of the year, the price picked up markedly from mid-summer onwards and at year-end 2010 stood at EUR 15.90. As a result, it was 43.2% higher than the figure at the beginning of the year and 59.0% above the value of the initial quotation on December 27, 2006.
The Binder+Co Group
Binder+Co AG is a specialist in the field of processing, environmental and packaging technology and the world market leader in the screening and glass recycling segments. The company has been listed on the Vienna Stock Exchange since the end of 2006 and is currently quoted in the third market of the mid market segment. In 2009, Binder+Co was awarded the Austrian National Innovation Prize for its development of the world’s first industrially mature system for the sorting of heat-resistant special glass from cullet.