Baldwin Reports Higher Sales and Earnings for Third Quarter
Press release from the issuing company
SHELTON, Conn.--April 29, 2004-- Baldwin Technology Company, Inc., a leading international manufacturer of accessory and control equipment for the printing industry reported higher net sales and net income for its third fiscal quarter ended March 31, 2004.
Net sales for the third quarter were $42,770,000 compared to $31,061,000 for the quarter ended March 31, 2003, an increase of about 38%. Net income was $705,000 or $0.05 per diluted share, in contrast to a net loss of ($1,117,000) or ($0.07) per diluted share for the third quarter of the prior year. Currency translation contributed approximately $4,700,000 to the gain in net sales, with a minimal affect on net income. Included in net income for the quarter were one-time charges of approximately $600,000 reported as other income/expense for costs incurred in connection with a Letter of Intent the Company terminated in January.
Backlog at March 31, 2004 was down from the end of the prior quarter, at $52,900,000 ($56,800,000 at December 31, 2003), but was up over $3,000,000 from the levels at the beginning of the current fiscal year. Orders for the current quarter were approximately $39,000,000.
Net sales for the nine months ended March 31, 2004 were $116,724,000 compared to $99,153,000 for the comparable period in the prior year, an increase of about 18%. Year to date net income was $2,608,000 or $0.17 per diluted share compared to a loss of ($6,620,000) or ($0.44) per diluted share for the nine months ended March 31, 2003.
Vijay C. Tharani, Vice President and CFO, commented: "Even after taking into consideration the favorable currency impact, our net sales increased by more than 22% over the comparable quarter in the prior year. Furthermore, given the Company's improved results, we are currently in discussions with our lenders to restructure our performance-based credit facility."
Gerald A. Nathe, Chairman, President and CEO, added: "We are pleased to report these favorable results. This is our third profitable quarter in a row and the fourth successive quarter in which the Company has posted positive operating cash flow. Since the January timeframe, when Baldwin announced that it would not proceed with the Letter of Intent, the Company has performed well. Baldwin is seeing the benefits of stronger relationships between our global sales and service teams and our customers. Improvement in the global economy has also favorably impacted printing. More printers and publishers are considering capital equipment purchases, including our equipment. Baldwin's improved order activity supports our belief that printers and publishers are continuing to invest in technology and products that improve their productivity and environmental efficiency."
In other news, the Company noted that "drupa" the world's largest print trade exhibition held once every four years, will run this year from May 6 through 19 in Dusseldorf, Germany. In keeping with the Company's theme at this show, "Setting New Standards", Baldwin will unveil new pressroom proven and environmentally responsible products and systems. "Baldwin is cautiously optimistic about sales opportunities arising from drupa", concluded Mr. Nathe.
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