AT&S Austria Technologie & Systemtechnik AG

Earnings Release • Oct 23, 2003

News Details

Ad-hoc | 23 October 2003 16:47

AT&S AG english

Result of the 1st half-year of 2003/04 as of 30 September 2003 Ad-hoc-announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– AT&S increases revenues by 18,1% and EBIT by 28,6% AT&S, Austria, 23 October 2003 In the second quarter total revenues of AT&S increased by 18,8% on the comparative period of the previous year, and amounted to 78,4 mill. Euros. Half-year revenues came in at 152,1 mill. Euros and were therefore 18,1% up on the value achieved in the same period last year. The EBIT increased to 8,3 mill. Euros in the second quarter, and is therefore up by 33,8%. The half-year EBIT therefore amounted to 12,3 mill. Euros, which is equivalent to a rise of 28,6%. The quarterly profit before tax (PBT), at 4,0 mill. Euros, was 27,6% below the value for the second quarter of the last financial year. On a half-year basis, this gives a PBT of 8,4 mill. Euros, which is therefore 9,2% below the comparative 2002/03 value. The write-off of the Adcon Investments in the past quarter, amounting to 1,7 mill. Euros, is responsible for this. Net income for the period amounts to 4,3 mill. Euros in the half-year, the earning per share amounting to 0,17 Euros. Net debt amounts to 56,9 mill. Euros and the net gearing is 29,8%. AT&S therefore has a very sound balance-sheet structure compared to the rest of the industry. For the 2003/04 financial year Management still estimates that there will be an increase in revenues of 10% to 20% relative to the value for the last financial year. Contrary to the previous assumption, Management now also believes that there will be an improvement in earnings (on the basis of net income/earnings per share) of 20%. Based on general visibility, which was still very limited at the end of the first quarter, increasing demand for circuit boards, particularly in HDI/Microvia technology, was observed in the past quarter. This increased demand will result in an excellent utilisation of capacity at the plants in Leoben/Austria and Shanghai/China to beyond the end of the calendar year. However, it cannot yet be finally determined, from the present situation, whether this trend at this stage heralds a long-tem tendency in the circuit board market. end of ad-hoc-announcement (c)DGAP 23.10.2003 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Results according to US-GAAP (in millions of Euros), profit/share in Euros): 1HY 03/04 Margin 1HY 02/03 Margin Total revenues 152.1 128.8 Gross profit 21.3 14,0% 23.4 18.2% EBITDA 32.7 21,5% 29.5 22.9% EBIT 12.3 8,1% 9.6 7.5% Net income 4.3 6.8 Earnings/share 0.17 0.25 Net debt 56.9 48.0 Net gearing 29.8 % 24.5 % Asian strategy of AT&S confirmed With its strategy of a flexible international distribution of its production between the sites in Austria and those in Asia (Nanjangud/India and Shanghai/China), AT&S was able to create optimum conditions for the demands of the markets. Customers trading internationally can now be supplied from Europe and increasingly from Asia because the second production line in Shanghai has full delivery capacity earlier than expected. At the same time AT&S, with the new sourcing and sales/marketing company in Hong Kong, is now profiting throughout the group from the lower purchase prices on the Asian markets. Savings of over 6 mill. Euros per annum are expected from this shift. Improved capacity distribution based on business units The share of the telecom sector in the overall production of AT&S, in particular HDI/Microvia circuit boards for handhelds, was around 65% in the half-year. The automotive sector remained stable with a share of 12.5% of total revenues, whilst the industrial/medical sector rose again and now accounts for 22%. AT&S has therefore taken one step closer to an optimum product mix. In the medium term the company should achieve a share of around 50% telecom and 25% automotive and industrial. The projects now being implemented in the automotive sector also indicate optimistic prospects for this sector, particularly as this industry is known for long pre-series periods but in consequence of this also for long-term projects. Positive influence on the result At 50% the tax rate of AT&S was still relatively high in the half-year but has already decreased sharply relative to the first quarter. The reason for this is the tax exemption of AT&S in China over 5 years, in general very good news, but this produces a situation where start-up losses may not be offset. In the second half of the fiscal year, the tax rate will drop still further due to the profitability of the plant in Shanghai. The presentation of results and the half-year accounts in Excel (excl. notes) for the 1st half-year can be found today, from 0800 hrs. (CET) on http://www.ats.net . The half-year report (PDF) will be available from 29 October 2003. You may obtain further information from René Berger, IRO, tel. +43-1-68300-9215, E-mail: r.berger@ats.net . ——————————————————————————– WKN: 922230; ISIN: AT0000969985; Index: TecDAX, NEMAX 50 Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 231647 Okt 03