Baldwin Reports Higher Sales and Earnings and Returns to Profitability for Fiscal 2004
Press release from the issuing company
SHELTON, Conn.--Aug. 18, 2004-- Baldwin Technology Company, Inc. announced today that net sales for the fiscal year ended June 30, 2004 were $158.1 million versus $134.2 million for the year ended June 30, 2003, an increase of almost 18%. Net sales for the fourth quarter ended June 30, 2004 were $41.4 million compared to $35.1 million for the fourth quarter in the prior year, representing an increase of approximately 18%.
Net Income for the quarter ended June 30, 2004 was $4.4 million or $0.28 per diluted share compared to a net loss of ($4.5 million) or ($0.30) per diluted share for the same quarter in the prior fiscal year. For the full year ended June 30, 2004, the Company recorded net income of $7.0 million or $0.46 per diluted share, which represented an improvement of $18 million or $1.22 per diluted share when compared to the prior year. Included in the Net Income for the quarter and year ended June 30, 2004 are certain net favorable tax adjustments amounting to approximately $3.9 million.
Specifically, the Company's tax provision for the fourth quarter and year ended June 30, 2004 was negatively and positively impacted by several items. Recent changes in tax laws in Germany impose deduction limitations on the amount of previously recorded Net Operating Losses (NOLs) that can be utilized against current income. In addition, the Company's taxable income was better than anticipated in some jurisdictions with higher marginal tax rates. Offsetting these increases in the Company's tax expense was the required reversal of a valuation allowance the Company had previously recorded against its German NOLs due to recent profitability and continuing projected improvement in the Company's German subsidiary.
Orders for the fourth quarter ended June 30, 2004 were $34.5 million. Due to stronger than expected shipments, the Company's backlog as of June 30, 2004 declined to approximately $45 million, down from $49.7 million at June 30, 2003. Strong order intake since year-end has improved current backlog to approximately $47 million.
Vijay Tharani, Vice President and CFO, commented: "We are very pleased with the financial results for Fiscal 2004. These results reflect favorably on the actions undertaken by the Company over the past year to improve its operating and financial performance. The Company is operating its business with fewer employees, managing its assets more effectively, tightly controlling its expenses, and shipping its order backlog more quickly. All of this has contributed to a very good year for Baldwin. In addition, we are currently in discussions with selected lenders to refinance our existing lines of credit, which will materially lower our cost of borrowings."
Gerald Nathe, Chairman and President, added: "I am very proud of the contributions of the Baldwin employees to the Company's performance this past year. They implemented and executed a range of action plans focused on customers, operations, expenses and financial matters. The results of these efforts are reflected in the significant improvement of Fiscal 2004 over Fiscal 2003. Although the global economic recovery remains unsteady, our industry difficult, and our competition formidable, we expect to carry the business momentum from Fiscal 2004 into Fiscal 2005."
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