EANS-Information of Significance: Binder+Co: Ongoing Difficult Market Environment

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quarterly report

14.05.2014

Gleisdorf, May 14, 2014

The first quarter of 2014 resulted in a perceptible decline in sales
revenues and earnings on the part of the Gleisdorf-based
international specialist for processing, environmental and packaging
technology. The company had somewhat more success in attracting new
business, although demand was also restrained.

Generally the prevailing trends towards a perceptible dampening of
demand and a significant increase in competitive pressure which were
already noticeable in 2013, especially in Europe, the domestic market
of Binder+Co, continued in the first quarter of 2014. Nevertheless,
in the first three months of the year Binder+Co succeeded in
acquiring new orders to the amount of EUR 19.68 million, thus
slightly surpassing the level of EUR 19.37 million in the prior-year
period. The total order backlog as of March 31, 2014 was EUR 39.53
million, a rise of 5.6% from the previous year (March 31, 2013: EUR
37.43 million). However, this order volume includes a large-scale
multi-year order totaling about EUR 18 million which will not yet
make any contribution to sales revenues in 2014. For this reason and
as a consequence of the retrained order intake in the first quarter,
sales revenues of the Group declined by 24.2% to EUR 16.73 million.
EBIT reflected this development and was negative at minus EUR 0.74
million.

Karl Grabner,Member of the Management Board of Binder+Co:"In the
first quarter of 2014 we were still confronted with losses generated
by the Chinese subsidiary we first established last year as well as
our Italian subsidiary. In addition, the parent company has also been
unable to make a positive earnings contribution so far this year.
This can be mainly attributed to orders we acquired in 2013 at low
margin levels as a consequence of the unfavorable market situation.
Accordingly, we are in the process of adjusting our own and leasing
capacities to reflect the lower sales revenues. With respect to new
business, one positive development is that we were contracted right
at the beginning of the year to supply another BUBLON facility. This
is further evidence that this completely new technology is beginning
to establish itself on the market. As this shows, top companies also
consistently invest in innovation and further development of their
own products, even in economically turbulent times. Moreover, we
succeeded in penetrating interesting new markets and customer
segments in 2013, such as the coal mining sector in China orpotassium
chloride (potash) processing in Canada. This not only opens up new
potential but enables us to reduce our dependency on our domestic
market of Europe."

Segments: Decreases in sales revenues and earnings, but more orders
for the most part The Processing TechnologySegment generated sales
revenues of EUR 9.18 million in the first three months of 2014, which
was once again the largest though somewhat reduced share of the
Group's sales revenues. However, earnings were negatively impacted by
the above-mentioned losses in the young subsidiaries assigned to this
segment as well as the lack of a positive earnings contribution from
the parent company. In contrast, the order intake of the segment
could be increased by a solid 12%. The sales revenue contribution of
the Environmental Technology Segment focusing on sorting machines for
glass, paper and plastics recycling totaled EUR 4.04 million, a
considerable drop from the comparable prior-year figure. Segment
earnings were also negative as a consequence of the decline in sales
revenues. First-quarter sales revenues of the independent subsidiary
Statec Binder GmbH, which coordinates the business of the Packaging
Technology Segment, decreased. Segment EBIT was also weaker, whereas
the order intake of the segment could be increased by about 25%.

Outlook

As previously mentioned, the order backlog of Binder+Co as at March
31, 2014 was higher than in the previous year, but includes a
large-scale multi-year contract in the Processing Technology Segment
valued at EUR 18 million which will not make a contribution to sales
revenues in the current financial year. The management expects
earnings margins to decline due to the difficult economic conditions
in Europe. Nevertheless, earnings in 2014 should remain at the
previous year's level due to the disproportionately high share of the
business with single machines.

Slight reduction of the workforce

The increasing internationalization of Binder+Co led to an increase
in the number of employees of close to 9% to 370 as per the end of
2013, the highest level to date. The workforce declined slightly to
367 as at March 31, 2014, and should continue to decrease slightly in
the upcoming quarterly periods.

Further investments at the Gleisdorf site

In the first quarter of 2014 Binder+Co invested a total of EUR 1.692
million. The focus of this spending continued to be the construction
of the new Group headquarters at the Gleisdorf site.

The Binder+Co share - Share price maintained The share price of the
Binder+Co share traded on the mid market of the Vienna Stock Exchange
increased by 6.5% in the first quarter of 2014 from EUR 21.40 to EUR
22.79. Most recently the Binder+Co share was traded at a price
ranging between EUR 22 and EUR 23.

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 andBinder+Co Machinery
(Tianjin) Ltd., as well asthe 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. Moreover, in 2011 it received both the Austrian National
Prize for Work Safety for its introduction of special safety measures
for apprentices, and the Best Open Innovator Award of the Zeppelin
University Friedrichshafen as the top SME in the D-A-CH region. In
2012, the company was also presented with theTRIGOS Styria in the
Ecology category for its efforts in the resource conservation area.

Further inquiry note:
Karl Grabner, Member of the Management Board
Tel.: +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