SHELTON, Conn.--Oct. 27, 2005-- Baldwin Technology Company, Inc., a leading global manufacturer of printing press accessories and control equipment, announced today that net sales for its first fiscal quarter ended September 30, 2005 increased approximately 7% or $2,648,000 to $42,645,000 compared to $39,997,000 for the first quarter in the prior year. Currency translation had an unfavorable effect of $249,000 on sales. Excluding the impact from a strengthening of the dollar versus the euro and the yen, sales were up $2,897,000.
Net income for the quarter increased 66% to $1,193,000 or $0.08 per fully diluted share, compared to $719,000 or $0.05 per fully diluted share for the same quarter in the prior fiscal year. Currency impact on net income was negligible. Orders for the quarter were $46,467,000 compared to $43,083,000 for the quarter a year earlier. The order backlog was at $51,936,000 on September 30, 2005, up from $48,114,000 at June 30, 2005, and up from $48,009,000 at September 30, 2004.
Vice President and Chief Financial Officer Vijay Tharani said, "We are pleased that earnings improved more than 60% during the quarter, despite the discontinuation of royalty income associated with the expiration of certain patents. Gross margins were approximately 3% higher than in the same quarter last year. We also benefited from reduced interest expense as a result of the refinancing of our bank loan earlier this fiscal year with Maple Bank GmbH."
President and Chief Operating Officer Karl Puehringer said, "This was a good quarter for Baldwin. We had a solid improvement in earnings and a healthy growth in sales and order activity. This is indicative of a robust market and strong levels of business activity for our products in the graphic arts industry."
Puehringer added, "For example, Baldwin was recently selected as a major supplier for ancillary equipment to be fitted on the new press lines ordered by West Australian Newspapers. These newspaper press configurations will be installed during 2006 and will be equipped with a broad range of Baldwin products, including MAXIMA and WORLD spray dampening systems, IMPACT GLOBAL cleaning systems and various other products. The Company has also benefited from strong industry demand for its cooling and mixing products, web protection products and blanket cleaning systems in the commercial printing marketplace."
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