Baldwin reports fiscal 1996 results.

ROWAYTON, CT--(BUSINESS WIRE)--Aug. 14, 1996--Baldwin Technology Company, Inc. (ASE: BLD) announced today that net sales for the three months ended June 30, 1996 were $76,838,000 compared with $66,614,000 for the comparable period in the prior year, and included approximately $9.5 million of sales by the Acrotec group of companies, an acquisition completed in October 1995. Net income was $2,871,000 or $0.17 per share for the quarter, compared with $2,500,000 or $0.14 per share for the quarter ended June 30, 1995.

For the fiscal year ended June 30, 1996, net income was $2,518,000 or $0.14 per share which includes restructuring charges of $3,000,000, on a pre-tax and after-tax basis, taken during the second quarter. Excluding the effects of the restructuring charges, net income and earnings per share for the year were $5,518,000 or $0.31 per share, compared with net income of $5,651,000 or $0.32 per share for the fiscal year ended June 30, 1995. Net sales for the fiscal year ended June 30, 1996 were $259,301,000, an increase of 17% over net sales of $222,341,000 for the prior fiscal year. Net sales included sales of $21,840,000 by the Acrotec group.

Orders for the quarter ended June 30, 1996 were $54 million, a decrease of 13% from the year-ago period. Orders for the year were $248 million, up 5% over the prior fiscal year. Excluding orders of the Acrotec group, orders for the quarter and full fiscal year decreased by 23% and 3%, respectively. Backlog at June 30, 1996 was $69 million, a decrease of 3% from the June 30, 1995 level and included $8 million of backlog of the Acrotec group.

Gerald A. Nathe, President, commented: "Fourth quarter results for our Asia Pacific sector were strong, due primarily to increased shipments of higher margin newspaper products and cleaning systems. We also finished with a very good year in our Americas sector, which achieved record sales and profits. Results in the Americas were influenced by the successful introduction of the company's new IMPACT cleaning system and strong performances by our splicer, stacker/bundler and newspaper inserter businesses.

In Europe, the recently acquired Acrotec group had good sales and profits for the quarter, but their results, as well as those of a number of our other European businesses, continue to be a disappointment. In our second quarter we reported a restructuring charge related to workforce reductions in our European sector. Through June 30, 1996, we have reduced employment levels in our German operation by 10%. During Fiscal 1997 we will continue to make workforce and structural adjustments in under-performing businesses. In addition, testing of the IMPACT cleaning system for the European market has been substantially completed and we will soon commence introduction of the system to that market."

Mr. Nathe concluded: "In our Americas and European sectors, fourth quarter order activity did not keep pace with the level of outgoing shipments. As a result, order backlogs in each of those sectors are down versus the year-ago levels, and we are cautious with respect to expected sales volumes for the first quarter of Fiscal 1997. Incoming orders in our Asia Pacific sector, however, continue to be strong, positioning that sector for improved results in Fiscal 1997. Nevertheless, our ability to achieve first quarter earnings at or above the year-ago levels is dependent upon increased order activity during the first quarter."

Baldwin Technology Company, Inc. is the leading international manufacturer of material handling, accessory, control and pre-press equipment for the printing industry.

Come visit us at http://www.baldwintech.com/baldwin -0-

                Condensed Consolidated Income Statement
                             (unaudited)
                        Three months ended June 30,
                               1996          1995

Net Sales                 $ 76,838,000    $ 66,614,000
Cost of Goods Sold          50,223,000      43,889,000
Gross Profit                26,615,000      22,725,000
Operating Expenses          20,757,000      17,763,000
Operating Income             5,858,000       4,962,000
Interest (net)                 833,000         737,000
Other expense (income), (net) (293,000)       (215,000)

Income before taxes          5,318,000       4,440,000

Net Income                   2,871,000       2,500,000

Weighted Average
Shares Outstanding          17,424,863      17,944,015

Net Income Per Share             $0.17           $0.14

                        Fiscal Year ended June 30,
                             1996            1995

Net Sales                 $259,301,000    $222,341,000
Cost of Goods Sold         173,271,000     146,727,000
Gross Profit                86,030,000      75,614,000
Operating Expenses          73,821,000      63,143,000
Restructuring Charges        3,000,000
Operating Income             9,209,000      12,471,000
Interest (net)               3,480,000       2,859,000
Other expense (income), net (1,490,000)     (1,130,000)

Income before taxes          7,219,000       10,742,000

Net Income                   2,518,000        5,651,000

Weighted Average
 Shares Outstanding         17,792,938       17,939,421

Net Income Per Share             $0.14            $0.32

Net Income Per Share
 excluding restructuring
 charge                          $0.31            $0.32
-0-

                    Condensed Consolidated Balance Sheet
                         (In thousands, unaudited)
                               June 30,        June 30,
                                 1996           1995

 Assets
   Cash and Equivalents        $ 9,794       $ 13,189
   Receivables                  63,721         63,394
   Inventory                    42,049         39,824
   Prepaid Expenses and Other    8,724          8,496
Total Current Assets           124,288        124,903

Property, Plant
 & Equipment, net               13,314          7,177
Intangibles, net                69,795         66,832
Other Assets                     9,943         10,858
Total Assets                   217,340        209,770

Current Liabilities
   Loans Payable                $9,704        $ 9,188
   Current Portion of
    Long-Term debt                 492            160
   Restructuring Reserve         2,552              0
   Other Current Liabilities    65,490         61,980
Total Current Liabilities       78,238         71,328
Long-Term Debt                  33,576         29,868
Other Long-Term Liabilities      8,470          9,686

Total Liabilities              120,284        110,882
Shareholders' Equity            97,056         98,888
Total Liabilities and
 Shareholders' Equity        $ 217,340      $ 209,770

CONTACT: Baldwin Technology Co. Inc., Rowayton

Helen P. Oster 

203/866-3497