AT&S Austria Technologie & Systemtechnik AG

Earnings Release • Jul 24, 2003

News Details

Ad-hoc | 24 July 2003 07:30

AT&S AG english

AT&S results for the 1st quarter 2003/04 as of 30 June 2003 Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– AT&S achieves substantial growth in revenues and earnings – The company achieved substantial revenue growth in the last quarter. Total revenues rose by 17.5% compared with the previous year to EUR 73.7m (1st quarter 2002/03: EUR 62.7m). After adjustment for sales in Shanghai, China, and Klagenfurt, Austria, organic growth alone totalled 6.7%. Against the background of a sluggish industry, AT&S was able to gain market shares. – Mainly due to the excellent performance in India the EBIT in the period under review was EUR 4.0m, which is 19.1% higher than in the same period of the previous year. – The profit before tax in the first three months was EUR 4.4m, representing an increase of 18.3% over the first quarter 2002/03. – Due to the start-up losses in China and associated tax holidays for the first years, the tax rate rose in the first quarter 2003/04 to 72% compared with 38% in the same quarter of last year. For the business year 2003/04, Management is continuing to expect revenues of 10% to 20% above the figure for the previous fiscal year and earnings at approximately the same level as 2002/03. However, Management is also drawing attention to the prevailing low visibility. The result presentation and the quarterly financial statements in Excel (excl. notes) for the 1st quarter 2003/04 can be retrieved from our website, www.ats.net, Investor Relations, Downloads, Conference Calls and Letter/Shareholders, resp., as of today at 08h00 a.m. (CET). The associated quarterly report (PDF) will be available as of July 29, 2003. If you have any inquiries please contact Manfred Weierer, IRO, Tel: +43-1-68300-9215, e-mail: m.weierer@ats.net. end of ad-hoc-announcement (c)DGAP 24.07.2003 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Results according to US-GAAP (in EUR millions, EPS in EUR): 1Q 03/04 Margin 1Q 02/03 Margin Total revenues 73.7 62.7 Gross profit 9.2 12.5% 9.8 15.6% EBITDA 14.1 19.1% 13.7 21.9% EBIT 4.0 5.4% 3.4 5.4% Net income 1.3 2.3 EPS 0.05 0.08 Net debt 57.9 18.1 Net gearing 29.9% 8.7% AT&S continues to be among the few global outperformers in the PCB industry. Its production facilities in China and India enable AT&S to benefit from the dynamic growth in Asia and also to develop new growth markets for its European sites by diversifying into the automotive and industrial electronics industries, that have traditionally had a strong base in Europe. Against the prevailing market and industry trends, AT&S recorded a substantial growth in revenues in the last quarter. Total revenues rose from the previous year’s 1st quarter by 17.5% to EUR 73.7m (1st quarter 2002/03: EUR 62.7m). The industrial electronics unit performed very impressively, recording an increase of some 57%, while the automotive and telecoms units both had growth rates of around 10%. After adjustment for the Shanghai, China, and Klagenfurt, Austria, sites which contributed EUR 4.7m and EUR 3.1m to total revenues, the organic growth compared with the previous year’s 1st quarter was still a notable 6.7%. Against the background of a sluggish market development, AT&S has successfully gained additional market shares. At the same time sales in the Asian region rose by + 41% from the same period in the previous year. Gross profit was particularly affected by price reductions and start-up losses of the subsidiaries in China and Klagenfurt/Austria. AT&S is expecting the challenging market environment to continue for the current business year. The overcapacity that exists and the movement in the Euro to US dollar exchange rate are contributing significantly to the current price situation. However, on the basis of the continued ramp-up of the Chinese plant, the increased capacity in India and the ongoing integration of the plant at Klagenfurt/Austria, Management is anticipating sales for the business year 2003/04 at a level 10% to 20% above the figure for the previous fiscal year. For the full financial year 2003/04, earnings are expected to be at approximately the same level as in the 2002/03 period. The plant in China is likely to reach break-even point in the current business year – however, for the entire business year 2003/04 a negative EBIT is still expected – also resulting in a lower tax rate for the AT&S Group. Continuously increasing profit contributions are also anticipated from the Klagenfurt/Austria plant. With the rise in sales achieved in the 1st quarter 2003/04 of 17.5%, AT&S has laid the grounds for a successful business year in 2003/04. However, Management is maintaining its cautious assessment for the full year 2003/04, referring to the prevailing low visibility which makes definite forecasts difficult. The highlights of the 1st quarter 2003/04 include the successful ramp of the new plant at Shanghai, China (utilization of the first production line already 100%, production yields and delivery performance above expectations, more than 20% of production to Asian customers), the extension to the plant at Nanjangud, India (planned capital expenditure in the business year 2003/04 of some EUR 5m, additional contribution to sales of EUR 9m per annum, with about 50% of this figure already in the 2003/04 business year) and the formation of a sourcing and sales/marketing company in Hong Kong, China (operations scheduled to start in the 2nd quarter, purchasing of raw materials in Asia at lower cost, implementation of global sourcing, reduction in the US dollar risk and also management of sales/marketing for the Asia-Pacific region). In addition, it is worked intensely on the expansion of the product portfolio by special technologies such as thick-copper systems, the rigid/flexible and flexible PCB technology which is expected to grow rapidly and significant research is performed relating to the use of optical wave guides in PCBs and inkjet processes in high-tech manufacture. Further cost reduction projects were also implemented in the first quarter 2003/04. These focused mainly on standardization of materials, the use of new, cheaper materials and the harmonization of operations. The production sites in Asia also improve the cost structure of the Group significantly. ——————————————————————————– 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 240730 Jul 03