SHELTON, Conn.--Aug. 11, 2005-- Baldwin Technology Company, Inc., a global leader in accessories and controls technology for the printing industry, announced today that net sales for the fiscal fourth quarter ending June 30, 2005 were $48.3 million compared to $41.4 million for the fourth quarter in the prior year, representing an increase of almost 17%. For the fiscal year, net sales rose nearly 10% to $173.2 million compared with $158.1 million for the year ended June 30, 2004. Income before taxes for the fourth quarter was $3.8 million, a five-fold increase over the prior year's $756,000. For the full year, income before taxes was $8.7 million, up over 60% from the prior year.
Fourth quarter net income was $2.0 million or $0.13 per diluted share compared to net income of $4.4 million or $0.28 per diluted share for the comparable quarter in the prior fiscal year. Included in the prior year's net income figures for the quarter and the full year were certain favorable tax adjustments, primarily relating to a release of a tax valuation reserve, of approximately $3.9 million. For the full year, Baldwin recorded net income of $5.0 million or $0.33 per diluted share, compared to $7.0 million or $0.46 per diluted share for the prior year.
Orders for the fiscal fourth quarter were $38.9 million. Backlog as of June 30, 2005 was $48.1 million, up from $44.9 million a year earlier. Strong orders received subsequent to year-end have further improved current backlog to approximately $50 million.
Baldwin Vice President and CFO Vijay Tharani said, "We had a year in which we saw improvement in the international economic/business climate, some strengthening of the global market for printing and printing related products, and an outstanding business performance by Baldwin. Sales, operating income and profit before taxes were significantly higher for the quarter and the year. Our earnings, coupled with effective management of working capital, enabled us to generate operating cash flows of over $14 million in fiscal 2005 and end the year with virtually no net debt which we define as total debt less cash on hand."
Chairman and CEO Gerald Nathe commented, "Customers have responded positively to our focus on their needs and our commitment to innovation. We believe that by adhering to our core strategies and technologies that we can continue to deliver strong results and create additional shareholder value."
"As part of the process of transforming Baldwin and maintaining our momentum in the global printing industry, the Company has recently made several organizational changes. Of particular note is the appointment of Karl S. Puehringer, formerly responsible for the Company's European operations, to the position of President and Chief Operating Officer, effective July 1, 2005. Supporting Karl in his new role as head of Baldwin's global operations will be a fine group of Baldwin employees. Their dedication and commitment during fiscal 2005 contributed significantly to Baldwin's impressive performance."
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