AT&S Austria Technologie & Systemtechnik AG

Regulatory Filings • Jun 4, 2009

News Details

Ad-hoc | 4 June 2009 08:45

AT&S Restructuring

AT&S Austria Technologie & Systemtechnik AG / Restructure of Company

Release of an Ad hoc announcement, transmitted by DGAP - a company of
EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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AT&S will be taking steps to transfer its volume business from Europe to
Asia and improve efficiency levels in Austria. The move will result in
one-time expenses of up to EUR 40 million, which will have a significant
negative impact on operating profit and consolidated net income in the
financial year 2009/10. Capital expenditures will be reduced to
approximately EUR 20 million.

As recently as November 2008, management was still confident that some
volume-manufacturing capacity for HDI printed circuit boards (PCBs) would
remain in Austria. However, the deteriorating economic climate in recent
months has led customers to concentrate on minimising purchasing prices
wherever possible. The resulting pressure on prices means that volume
production is no longer viable in Austria at current cost levels.

Consequently, the Group has been compelled to relocate volume production in
its entirety from the Leoben-Hinterberg site to Asia, leaving the
Leoben-Hinterberg plant to focus exclusively on servicing the European
market. Production capacity - measured by the area of PCBs produced - will
be cut from the current level of about 130,000 sqm to 70,000 sqm.

The relocation of capacity and the drive to improve efficiency in Austria
will also lead to adjustments in staff levels in line with expected future
requirements. The number of staff will be cut by about 300 within the next
months.

Restructuring expenses are expected to reach up to EUR 40 million in the
financial year 2009/10, with some 30% of these expenses being cash
relevant. Due to the prevailing economic climate, a year-on-year decline in
operative business is likely, and management anticipates operating profit
and consolidated net income to be significantly weaker than in the
financial year 2008/09.

In response to worsening market conditions, capital expenditures will be
reduced from up to EUR 30 million to approximately EUR 20 million.

For further information:
AT&S Austria Technologie & Systemtechnik AG
Hans Lang, IRO
Tel. +43-1-68300-9259, e-mail: h.lang@ats.net, www.ats.net

04.06.2009 Financial News transmitted by DGAP

Language: English
Issuer: AT&S Austria Technologie & Systemtechnik AG
Fabriksgasse 13
8700 Leoben
Österreich
Phone: +43 (1) 3842200-0
Fax: +43 (1) 3842200-216
E-mail: info@ats.net
Internet: www.ats.net
ISIN: AT0000969985
WKN: 922230
Listed: Freiverkehr in Berlin, Hannover, Düsseldorf, Hamburg,
München, Stuttgart; Open Market in Frankfurt; Foreign
Exchange(s) Wien

End of News DGAP News-Service

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