EQS-News: AT&S Austria Technologie & Systemtechnik AG / Key word(s): Half
Year Results/Quarterly / Interim Statement
AT&S expects revenue at prior-year level
31.10.2024 / 07:03 CET/CEST
The issuer is solely responsible for the content of this announcement.
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AT&S expects revenue at prior-year level
• Revenue in Q2 2024/25 € 451 million, up 29% on Q1 2024/25 and at the
same level as prior-year quarter (Q2 2023/24: € 452 million; Q1
2024/25: € 349 million)
• Outlook for FY 2024/25 adjusted due to market situation
• Outlook for FY 2026/27 confirmed
Leoben – AT&S expects the market conditions of the first half of the
financial year 2024/25 to continue. “In a market environment that remains
highly volatile, we achieved significant increases in volume, also thanks
to our customer diversification, which is progressing successfully. At the
same time, however, our efforts were outweighed by massive price pressure
as well as due to the current weakness of the European automotive and
industrial markets,” says Peter Schneider, Spokesman of the Management
Board and EVP of the Business Unit Electronics Solutions.
CFO Petra Preining explains, “The efficiency programs we have been
pursuing consistently are clearly showing effect, and that makes us
generally optimistic. But since the difficult conditions will also
determine our development in the second half of the financial year, we now
assume that this year’s revenue and adjusted EBITDA will approximately
reach the level of the previous year.”
In comparison with the prior-year period, consolidated revenue was nearly
constant at € 800 million in the first half of 2024/25 (PY:
€ 814 million). AT&S recorded a positive volume development during the
reporting period, which was, however, offset by continuing high price
pressure for both printed circuit boards and IC substrates.
EBITDA declined by 27% from € 217 million to € 157 million. The decline in
earnings is primarily attributable to the increased price pressure and
higher start-up costs. In order to counter effects such as price pressure
and inflation resulting from the currently difficult market environment,
AT&S consistently continued to drive its comprehensive cost optimization
and efficiency program. In addition to price pressure, start-up costs in
Kulim, Malaysia, and Leoben, Austria, as well as costs in connection with
the cost optimization and efficiency program had a negative impact on
earnings. Adjusted for these costs, EBITDA amounted to € 223 million (PY:
€ 249 million), which corresponds to a decline by 10%.
The EBITDA margin amounted to 19.6% (adjusted EBITDA margin: 27.9%), thus
falling short of the prior-year level of 26.6% (adjusted EBITDA margin:
30.6%).
Depreciation and amortization increased by € 15 million year-on-year to
€ 150 million (19% of revenue) due to additions to assets and technology
upgrades. EBIT fell from € 82 million to € 7 million. The EBIT margin
amounted to 0.9% (PY: 10.0%). Finance costs – net declined from
€ -18 million in the previous year to € -50 million primarily due to
higher interest expenses. This development was mainly driven by a
significant increase in financial liabilities and the related financial
expenses. Profit for the period decreased from € 49 million to
€ -63 million, leading to a decline in earnings per share by € 2.86 from
€ 1.02 to € -1.84.
Cash flow from operating activities amounted to € -91 million in the first
half of 2024/25, down 127% on the prior-year figure. The company is
currently working on a realignment of the international factoring program,
which is scheduled to be implemented by the fourth quarter of the
financial year 2024/25 at the latest.
Key figures
in € million Q2 2024/25 Q2 Change in H1 H1 Change in
2023/24 % 2024/25 2023/24 %
Revenue 451 452 0 800 814 -2
EBITDA 93 142 -35 157 217 -27
EBITDA adjusted^1) 127 157 -19 223 249 -10
EBITDA margin (in 20.6 31.3 - 19.6 26.6 -
%)
EBITDA margin 28.1 34.7 - 27.9 30.6 -
adjusted (in %)^1)
EBIT 15 73 -80 7 82 -92
EBIT adjusted^1) 54 89 -40 80 116 -31
EBIT margin (in %) 3.3 16.2 - 0.9 10.0 -
EBIT margin 11.9 19.7 - 10.0 14.2 -
adjusted (in %)^1)
Profit/loss for the -29 51 -156 -63 49 -229
period
ROCE (in %)^1) n.a n.a - -1.0 6.4 -
Net CAPEX 162 245 -34 254 517 -51
Cash flow from
operating -104 112 -193 -91 341 -127
activities
Earnings per share -0.85 1.20 -171 -1.84 1.02 -280
(in €)
Number of 13,407 13,854 -3 13,490 13,982 -4
employees^2)
^
^1) Adjusted for start-up and restructuring costs
^2) Incl. leased personnel, average. As at September 30, 2024: 13,278
The asset and financial position at September 30, 2024 is still
characterized by investing activities and the associated financing
activities. Total assets increased, due to an increase in receivables and
property, plant and equipment, among other things. The equity ratio
declined by 0.7 percentage points to 20.0%due to the loss for the period
attributable to shareholders and the high investment volume.
Cash and cash equivalents increased to € 686 million (March 31, 2024:
€ 676 million). In addition, AT&S has unused credit lines of € 215 million
to secure the financing of the future investment program and short-term
repayments.
Expected market environment
The development of the different market segments still shows significant
discrepancies. While volume in the areas of mobile devices, computers and
communication infrastructure prove to be stable, the automotive and
industrial markets continue to be weak. AT&S expects this weakness, which
primarily affects Europe, to continue into next year. Although overall PCB
prices declined to a lesser degree than in the previous year, price
pressure is persisting to a large extent. The pricing situation for IC
substrates has aggravated and pressure remains unchanged.
In the printed circuit board segment it is above all mobile devices and
data centers that show positive forecasts and drove the PCB market in the
last quarter. In addition to increased investments in servers, the related
communication infrastructure is now also being expanded. At the same time,
lower demand for e-mobility and a general economic weakness continue to
burden demand for automotive and industrial printed circuit boards.
Automotive and industrial inventory levels are still high and are
currently being reduced.
In the area of IC substrates, the market benefited from the recovery of
client computing demand and special AI chips, whereas the classic server
segment continues to be weak. A recovery is largely dependent on a general
economic recovery and is therefore not expected this year.
Outlook 2024/25
Despite a few bright spots in the market, economic pressure is persisting;
therefore, improving market effects were weaker than expected. As a
result, the company anticipates price pressure to continue until the end
of the fiscal year. To counter this effect, the company will consistently
implement and further focus the ongoing efficiency programs. In addition
to comprehensive cost-cutting measures, a reduction of up to 1,000
employees will be implemented at the existing locations.
The management is planning investments of roughly € 500 million for the
financial year 2024/25 depending on the market environment and progress of
projects. The majority of these investments will be used for the IC
substrate production at the new plants in Kulim and Leoben.
The management expects price pressure and the volatile order behavior of a
key customer to continue in the second half of the year. The weakness of
the European automotive and industrial markets is also likely to persist.
In addition, high-volume production at the two new plants will start one
to two quarters later than originally planned so that these plants are not
expected to contribute to revenue in the current financial year.
Accordingly, the costs incurred until then will be reported as start-up
costs.
For these reasons, the company has adjusted its outlook for the financial
year 2024/25.
Financial year Currently Previously excl. Previously incl.
2024/25e contribution from contribution from
Ansan Ansan
Revenue € 1.5‒1.6 billion € 1.6‒1.7 billion € 1.7‒1.8 billion
EBITDA up to up to € 88 million up to
adjustments(1)(1) € 110 million € 88 million
Adjusted EBITDA 24‒26% 24‒26% 25‒27%
margin
The revenue and EBITDA contribution of the plant in Ansan will continue to
be included in the respective items of the consolidated statement of
profit or loss until the sale process is completed (IFRS 5, Disposal
Group). The proceeds from the sale will not be included in the adjusted
EBITDA margin.
Guidance 2026/27
The production capacity expansion in Kulim and the expansion of the site
in Leoben are still developing positively despite the currently
challenging global economic situation. AT&S assumes that revenue of
approximately € 3 billion will be generated in the financial year 2026/27
and expects an EBITDA margin of 27 to 32%. This forecast does not include
potential revenue from the second plant built by AT&S in Kulim. The
management monitors the currently tense geopolitical situation very
carefully in order to be able to respond to developments and to make
strategic adaptations.
(2)^(1) Effects from the start-up of new production capacities in Kulim
and Leoben and one-off costs from the implementation of the cost
optimization and efficiency program
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31.10.2024 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com
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Language: English
Company: AT&S Austria Technologie & Systemtechnik AG
Fabriksgasse 13
8700 Leoben
Austria
Phone: +43 (1) 3842200-0
E-mail: ir@ats.net
Internet: www.ats.net
ISIN: AT0000969985, AT0000A09S02
WKN: 922230
Indices: ATX
Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt,
Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange;
Vienna Stock Exchange (Official Market)
EQS News ID: 2019547
End of News EQS News Service
2019547 31.10.2024 CET/CEST
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