Baldwin Reports Disappointing Third Quarter Results
Press release from the issuing company
SHELTON, Conn.--May 2, 2001--Baldwin Technology Company, Inc. (ASE:BLD) reported today that net income for its third quarter ended March 31, 2001 was $332,000 or $0.02 per diluted share, compared to net income of $1,825,000 or $0.12 per diluted share, for the third quarter of the prior year. Net sales for the current period were $47.6 million versus $50.7 million for the prior year's quarter.
The foreign currency translation impact of a strong U.S. dollar decreased net sales and net income by approximately $3,000,000 and $152,000, respectively, compared to the prior year. The third quarter of last year included two extraordinary items: an after-tax restructuring charge of $3.6 million or ($0.23) per diluted share, and a tax benefit of a net operating loss carry-forward of $4.1 million or $0.27 per diluted share.
Backlog as of March 31, 2001 was $67.2 million compared to $65.2 million at March 31, 2000. Orders for this year's third quarter were $49.3 million versus $47.6 million for the prior year's comparable quarter. Previous year's orders and backlog have been adjusted for divested operations. The current quarter reported orders were negatively impacted by foreign currency translation of $3.2 million or 6%.
Gerald A. Nathe, Chairman, commented: "We are disappointed by the quarter's results. Baldwin continues to experience severe market pricing pressures during this general global economic slowdown. In this environment, we need to be even more aggressive in the implementation of our restructuring and cost reduction efforts. John T. Heald, our new President and Chief Operating Officer, is taking immediate action on these items. He is also examining how Baldwin can take better advantage of the excellent brand name recognition it has in the marketplace."
John T. Heald stated: "I am pleased to be a part of the Baldwin management team, and look forward to helping fulfill Baldwin's vision of being the global supplier of choice to the graphic arts marketplace."
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