EANS-Information of Significance: Binder+Co Aktiengesellschaft / New markets opened up in a still challenging environment

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quarterly report

13.11.2013

Gleisdorf, November 13, 2013. In the first nine months of 2013,
Binder+Co, the international specialist for processing, environmental
and packaging technology, which has its headquarters in
Gleisdorf/Austria, was able to raise its sales revenues by 17.0%.
EBIT remained solid at EUR 3.43 million, but owing to initial losses
at subsidiaries, which are still in the development phase, was down
on the level of the previous year. Conversely, in spite of a
continuation of difficult market conditions, the company was able to
make inroads into new markets and customer segments.

Karl Grabner, from the Binder+Co Management Board: “As a result of
the successful penetration of new markets and customer segments,
during the first three quarters of 2013 we were able to lay a basis
for future successes. Owing to the excellent order backlog at the
beginning of the year, we succeeded in raising our sales revenues for
the period under review by 17.0%. The performance of Packaging
Technology was especially encouraging, as it not only doubled its
sales revenues, but also provided the largest EBIT of all segments.
In view of the initial losses of our young subsidiaries, we can state
that overall we closed the first nine months of the year in a
generally satisfactory manner with solid EBIT of EUR 3.43 million.

The deterioration in market conditions and the considerable increase
in competition, which represented the predominant trend in the first
half of 2013, continued in the third quarter. Consequently, at EUR
54.08 million (Q1–3/2012: EUR 64.90 million) order intake was 16.7%
below the figure for the preceding year. However, on the basis of the
excellent order backlog at the beginning of the year, Binder+Co
increased its sales revenues by 17.0% to EUR 68.89 million
(Q1–3/2012: EUR 58.89 million) and demonstrated good use of capacity.
Moreover, although the anticipated, initial losses at the
Comec-Binder S.r.l., Bublon GmbH and Binder+Co Machinery (Tianjin)
Ltd. subsidiaries placed a burden on EBIT, it remained firm at EUR
3.43 million (Q1–3/2012: EUR 4.98 million). As far as new business
was concerned, demand in all three segments continued to focus almost
exclusively on single machines and there was practically no interest
in systems and plants. Therefore, order backlog at the end of the
period under report amounted to EUR 25.30 million, which was 27.3%
below the value for the previous year.

Successful entry into new markets

In the first three quarters of 2013, Binder+Co was able to open up
interesting new markets and customer segments. For example, entry
into the Chinese coal mining market via screening technology products
and an increase in drying system orders for potash treatment in
Canada, serve as confirmation of the growth potential in both these
branches. In addition, the steady demand for high-performance
packaging technology from Asia also continued in 2013.

Packaging Technology boom

As the strongest segment in terms of volume, during the first nine
months of the year Processing Technology provided sales revenues of
EUR 28.18 million and thus the largest share of Group sales. However,
its EBIT was burdened by the aforementioned losses from the new
subsidiaries, which have all been allotted to this segment. Sales
revenues in the Environmental Technology Segment, which focuses on
classification machines for glass and plastics recycling, were 5.3%
below the figure for the previous year at EUR 19.49 million and the
segment result was also down on the excellent comparative total of
the previous year at EUR 2.06 million. By contrast, the Packaging
Technology Segment, which is managed by the independent subsidiary
Statec Binder GmbH, was able to more than double its sales revenues
in the first nine months of 2013 to EUR 21.22 million (Q1–3/2012: EUR
10.24 million). On this basis, the segment’s EBIT also rose to EUR
2.83 million (Q1–3/2012: EUR 1.01 million) and represented the
largest contribution from all three segments.

Cautious outlook

Far lower order backlog as compared to the preceding year and the
challenging market conditions currently prevailing do not permit any
certainty of outlook. In addition, the continuing weaknesses in
system and plant business have prompted the management to revise its
forecasts for the whole of 2013 to an EBIT margin of around 6–8%
based on a slight increase in sales revenues.

Moderate workforce enlargement

Continuing internationalization also involves a moderate increase in
the size of the Binder+Co Group workforce. As at September 30, 2013,
this numbered 371, which was 8.5% up on the comparative figure of the
previous year.

Investments in key areas

In the first nine months of 2013, Binder+Co invested a sum of EUR
3.57 million at the Gleisdorf location in the construction of the new
Group headquarters and the installation of new production equipment.

The Binder+Co share continues to ease

During the first three quarters of the 2013 financial year, the price
of the Binder+Co share, which is traded on the mid market of the
Vienna Stock Exchange, fell back by 27.20% from EUR 27.50 to EUR
20.02.

The Binder+Co Group

Binder+Co 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. The Binder+Co Group consists of Binder+Co
AG, the three fully owned subsidiaries Comec-Binder S.r.l., Bublon
GmbH and Binder+Co Machinery (Tianjin) Ltd., as well as the Statec
Binder GmbH joint venture (50.7%). In 2010, Binder+Co was awarded the
Austrian National Innovation Prize for its successful implementation
of inventive capacity and in 2011 received the Austrian National
Prize for Work Safety for its introduction of special accident
prevention measures for apprentices. In the same year, the company
was also honoured with the Best Open Innovator Award of the Zeppelin
University Friedrichshafen as the top SME in the D-A-CH region.

Further inquiry note:
Karl Grabner, Member of the Management Board
Phone: +43/3112/800-363

end of announcement euro adhoc
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issuer: Binder+Co Aktiengesellschaft
Grazerstraße 19-25
A-8200 Gleisdorf
phone: +43 3112 800-363
FAX: +43 3112 800-320
mail: karl.grabner@binder-co.at
WWW: www.binder-co.com
sector: Machine Manufacturing
ISIN: AT000BINDER3
indexes: mid market
stockmarkets: Third Market: Wien
language: English