Baldwin Reports 1Q, Disposition of Roll Handling Will Help Future Earnings
Press release from the issuing company
SHELTON, Conn.--Nov. 7, 2001--Baldwin Technology Company, Inc. (ASE:BLD) reported today that its net sales for the quarter ended September 30, 2001 were $38.5 million versus $45.0 million for the quarter ended September 30, 2000.
The Company had a net loss for the quarter of ($1.1 million) or ($0.08) per diluted share, compared to net income of $0.6 million or $.04 per diluted share, for the first quarter of the prior year. When net sales are adjusted to account for operations that have been divested and currency translations, revenues increased 5% during this year's first quarter, compared to the same period in the prior year.
This year's first quarter results included a pre-tax charge of $0.6 million related to the recent bankruptcy filing by a major customer. In addition, the Company adopted the provisions of SFAS 142, "Goodwill and Other Intangible Assets'' resulting in a reduction of goodwill amortization expense of approximately $0.2 million in the quarter.
Adjusted for the effects of divestitures, backlog as of September 30, 2001 was $56.0 million, reflecting an increase of 11% above the backlog of $50.3 million at June 30, 2001. Orders, similarly adjusted, were $39.4 million for this year's first quarter, 17% above orders for the quarter ended June 30, 2001 and approximately 18% above orders for last year's first quarter.
John T. Heald, Jr., President and COO, commented, "At the end of our last fiscal year, we predicted that we would approach break-even during this first quarter. If we exclude the first quarter loss of the Company's Roll Handling Group and the additional charge associated with the bad debt reserve, we would have come close to that goal.''
Vijay C. Tharani, Vice President and CFO, continued, "Now that we have completed the disposition of the Roll Handling Group, we expect to see improved margins. In addition, as the year progresses, we will also begin to see the favorable impact of many of the restructuring activities which are now in progress.''
Mr. Heald concluded, "Although there is some uncertainty in the marketplace, we are on track with our plans for refocusing the business as we continue to restructure the Company and build on its core strengths in the accessory and controls business.''
Baldwin Technology Company, Inc. is the leading international manufacturer of accessory and control equipment for the printing industry.
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