Binder Co

Binder+Co Q1/2010 results clearly down on the previous year’s level, order backlog in line with the long-term average


Source: Binder Co

Gleisdorf -- In line with expectations, Binder+Co, as a company positioned at the end of the economic cycle, first fully felt the effects of the global crisis in 2010. Overall, the Gleisdorf-based specialist for processing, environmental and packaging technology closed the first quarter of 2010 with a positive result, but both sales revenues and EBIT were markedly lower than the figures for the preceding year.

“Even though we could not emulate the results of last year during the first quarter of 2010, due to the positive trend in the single machine business our order backlog corresponded with the long-term average, which is reason for satisfaction.”  Karl Grabner, Member of the Binder+Co Management Board.

Single machine business remains solid
In the first quarter of 2010, Binder+Co achieved total sales revenues of EUR 12.06 million. This corresponds with a decline of 21% as compared to the preceding year and a return to the level of the 2007 financial year (Q1/2007: EUR 11.61 million), and thus in line with the long-term average. As a consequence, EBIT was also EUR 0.87 million below the figure for 2009, but nevertheless remained clearly positive at EUR 0.31 million. In view of the fact that the first quarter of the year is traditionally the weakest in the branch, this can be seen as a positive achievement. While the satisfactory single machine sales trend was maintained, system and plant business stagnation continued unabated, with the exception of individual projects in the Environmental Technology Segment, during the first three months of 2010.     

Segment development
In the first quarter of 2010, the Processing Technology Segment attained sales revenues of EUR 6.18 million (Q1/2009: EUR 7.97 million) and thus provided the largest share of total sales revenues (51%). The Segment’s EBIT contribution amounted to EUR 0.13 million (Q1/2009: EUR 0.47 million). Moreover, even though order intake improved slightly over the comparable value for 2009 to EUR 4.19 million (Q1/2009: EUR 3.85 million), there was no sign of a sustained improvement in the general situation.

Environmental Technology Segment sales revenues were clearly lower than in the preceding year at EUR 3.68 million (Q1/2009: EUR 5.81 million). EBIT amounted to EUR 0.08 million and was therefore just positive (Q1/2009: EUR 0.73 million). Order intake amounted to EUR 5.93 million (Q1/2009: EUR 8.47 million).

During the first quarter of 2010, the Packaging Technology Segment was able to raise its sales revenues to EUR 2.20 million (Q1/2009: EUR 1.45 million) and as opposed to the first quarter of 2009, achieve positive EBIT of EUR 0.10 million (Q1/2009: minus EUR 0.02 million). Nonetheless, at EUR 1.57 million order intake was down on the EUR 3.71 million of last year.   

Order situation remains tense
The positive trend in single machine business was mainly responsible for the order backlog at the end of March 2010. At EUR 17.57 million this stood at the solid level of 2007 and was thus in line with the long-term average. However, owing to the fact that from a current perspective a significant upturn in large volume system and plant order demand cannot be expected in the coming months, the Binder+Co management does not anticipate any special growth impulses from its branch markets up to the end of 2010.

The Binder+Co share price remains stable
During the first quarter of 2010, the price of the Binder+Co share, which is listed on the mid market of the Vienna Stock Exchange, remained very stable. Having started 2010 at a level of EUR 11.10, by March 31 the share price had risen to EUR 11.80. 

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 was listed on the Vienna Stock Exchange at the end of 2006 and is now part of the third market in 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 fragments.

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