EQS-News: AT&S’s recovery continues
EQS-News: AT&S Austria Technologie & Systemtechnik AG / Key word(s): Half
Year Results/Quarter Results
AT&S’s recovery continues
02.11.2023 / 07:29 CET/CEST
The issuer is solely responsible for the content of this announcement.
══════════════════════════════════════════════════════════════════════════
AT&S’s recovery continues
• Revenue in the second quarter of 2023/24 at € 452 million, up 25% on
the preceding quarter, but still down 20% on the prior-year quarter
(Q2 2022/23: € 567 million; Q1 2023/24: € 362 million)
• Adjusted EBITDA margin of 30.6% only slightly below previous year
• Guidance for FY 2023/24 and 2026/27 confirmed
Leoben –
AT&S maintained a solid performance in a continuously volatile market
environment in the first half of the financial year 2023/24. “Although the
economic environment has changed fundamentally compared to last year and
we have been confronted with many challenges, we have been able to
continue the recovery shown at the beginning of the financial year,” says
AT&S CEO Andreas Gerstenmayer and explains, “We introduced efficiency and
cost optimisation programmes in a timely manner. Not only are these
measures taking effect faster than planned, they have also significantly
improved the earnings situation.”
Gerstenmayer sees positive trends for the future: “Even though we expect
market volatility to continue for the time being, the major trends
regarding digitalisation and electrification remain intact and offer AT&S
clear growth opportunities.”
In comparison with the strong prior-year period, consolidated revenue
declined by 24% to € 814 million in the first half of 2023/24 (PY:
€ 1,070 million). Adjusted for currency effects, consolidated revenue fell
by 21%. This development was primarily driven by the fundamental changes
in the economic environment. However, within the first half of the
financial year, a significant increase was recorded in both segments:
compared with the first quarter, revenue in the second quarter rose by 30%
in the Electronics Solutions segment and by 18% in the Microelectronics
segment.
EBITDA decreased by 31% from € 315 million to € 217 million in the first
half of the year. The reduction in earnings is primarily attributable to
the decline in consolidated revenue. In order to counter effects such as
price pressure and inflation, which result from the currently difficult
market situation, AT&S already initiated comprehensive cost optimisation
and efficiency programmes in the past financial year. These programmes
already made a higher contribution in the first half of the financial year
2023/24 than originally planned. As was the case with revenue, both
segments also significantly improved EBITDA within the first half of the
financial year. EBITDA in the Electronics Solutions segment increased by
119% to € 89 million in the second quarter (Q1 2023/24: € 41 million) due
to higher revenue and a better product mix. In the Microelectronics
segment, EBITDA was up 43% on the first quarter from € 35 million to
€ 50 million for similar reasons.
Currency fluctuations had a positive influence of € 15 million on
earnings. Adjusted for start-up costs in Kulim, Malaysia, and Leoben,
Austria, EBITDA amounted to € 249 million (PY: € 335 million), which
corresponds to a decrease by 26%.
The EBITDA margin amounted to 26.6% (EBITDA margin adjusted for start-up
costs: 30.6%), thus falling short of the prior-year level of 29.5% (EBITDA
margin adjusted for start-up costs: 31.3%). The margin was supported by
the cost optimisation and efficiency programmes and once again by the
positive development in the Medical segment – a sector for which AT&S is
currently assessing strategic options. Depreciation and amortisation
increased by € 0.9 million to € 135 million (16.6% of revenue) due to
additions to assets and technology upgrades. EBIT fell from € 181 million
to € 82 million. Finance costs – net declined from € 66 million in the
previous year to € -18 million primarily due to a change in currency
effects on cash and cash equivalents. Profit for the period declined from
€ 224 million to € 49 million, leading to a decline in earnings per share
by € 4.50 from € 5.52 to € 1.02.
The financial position as of September 30, 2023 is still characterised by
investing activities and the associated financing activities. Total assets
increased to € 4,317 million due to additions to assets, up 4% compared to
the balance sheet date March 31, 2023. Despite the positive profit for the
period, the equity ratio decreased by 2.1 percentage points to 25.7% as a
result of the high investment volume and due to negative foreign exchange
effects in other comprehensive income (OCI).
Cash and cash equivalents declined to € 712 million (March 31, 2023:
€ 792 million). In addition, AT&S has unused credit lines of € 623 million
to secure the financing of the future investment programme and short-term
repayments.
Key figures
Q2 Change H1 H1 Change
in € million Q2 2023/24 2022/23 in % 2023/24 2022/23 in %
Revenue 452 567 -20% 814 1,070 -24%
EBITDA 142 178 -20% 217 315 -31%
EBITDA adjusted^* 157 190 -18% 249 335 -26%
EBITDA margin (in %) 31.3 31.4 – 26.6 29.5 –
EBITDA margin adjusted 34.7 33.6 – 30.6 31.3 –
(in %)^*
EBIT 73 108 -32% 82 181 -55%
EBIT adjusted^* 89 121 -26% 116 202 -65%
EBIT margin (in %) 16.2 19.1 – 10.0 16.9 –
EBIT margin adjusted 19.7 21.4 – 14.2 18.9 –
(in %)^*
Profit for the period 51 128 -60% 49 224 -78%
ROCE (in %)^* n.a. n.a. – 6.4 19.5 –
Net CAPEX 245 213 -15% 517 490 6%
Cash flow from 112 160 -30% 341 366 -7%
operating activities
Earnings per share (in 1.20 3.17 -62% 1.02 5.52 -81%
€)
Number of employees^** 13,854 15,727 -12% 13,982 15,309 -9%
^* Adjusted for start-up costs
^** Incl. leased personnel, average. As at September 30, 2023: 13,741
Outlook 2023/24
Depending on the market development, AT&S will continue to push ahead the
investment projects in Kulim and the expansion of the site in Leoben and
implement technology upgrades at other locations in the financial year
2023/24. In view of the highly volatile environment, the ongoing
investment projects will be reviewed at frequent intervals and adapted to
the respective current situation if required.
The expectations for AT&S’s segments are currently as follows: In the
markets for IC substrates, demand for notebooks in 2023 is expected to be
lower than in 2022. Servers saw a slump at the beginning of the year
caused by the economic situation, with a recovery expected in the short
term so that the prior-year level should be exceeded as early as the
second half of 2024.
In the area of mobile devices, where overall market conditions are weak,
the module printed circuit board business will remain a positive driver
for AT&S. While the Automotive segment is subject to a growth trend as the
electronic content per vehicle is increasing, the PCB market is under
price pressure. In the Industrial segment, the market is expected to
decline this year.
The management is planning investments totalling up to € 1.1 billion for
the financial year 2023/24 depending on the market environment and
progress of projects.
AT&S expects the market environment to remain challenging with continued
price pressure in the second half of 2023/24, and persisting high
volatility and low visibility. High inflation rates, rising interest
rates, recession risks as well as geopolitical developments continue to
represent additional elements of uncertainty for the end markets.
In this challenging environment, AT&S expects annual revenue between € 1.7
and 1.9 billion. Not including effects from the start-up of the new
production capacities in Kulim and Leoben totalling approximately
€ 100 million, the adjusted EBITDA margin is expected to range between 25
and 29%.
Guidance 2026/27
The progress of the production capacity expansion in Kulim and the
expansion of the site in Leoben is still positive despite the challenging
global economic situation. Therefore, AT&S assumes that revenue of
approximately € 3.5 billion will be generated in the financial year
2026/27 and expects an EBITDA margin in the range from 27 to 32%. The
management monitors the currently tense geopolitical situation very
carefully in order to be able to respond to developments at any time and
to make strategic adaptations.
AT & S Austria Technologie & Systemtechnik Aktiengesellschaft – Advanced
Technologies & Solutions
AT&S is a globally leading manufacturer of high-end IC substrates and
printed circuit boards. AT&S industrialises
leading-edge technologies for its core business segments IC Substrates,
Mobile Devices, Automotive & Aerospace, Industrial and Medical. AT&S has a
global presence with production sites in Austria (Leoben, Fehring) and
plants in India (Nanjangud), China (Shanghai, Chongqing) and Korea (Ansan
near Seoul). A new high-end production site for IC substrates is currently
being established in Kulim, Malaysia. In Leoben, a European competence
centre including series production is being built.
The company employs roughly 14,000 people. For further information please
visit [1] www.ats.net
Press contact:
Gerald Reischl, Vice President Corporate Communications
Tel: +43 3842 200 4252; Mobile: +43 664 8859 2452; [2]g.reischl@ats.net
Investor Relations contact:
Philipp Gebhardt, Senior Director Investor Relations
Tel: +43 3842 200 2274; Mobile: +43 664 7800 2274; [3]p.gebhardt@ats.net
AT & S Austria Technologie & Systemtechnik Aktiengesellschaft
Fabriksgasse 13
8700 Leoben / Austria
[4] www.ats.net
══════════════════════════════════════════════════════════════════════════
02.11.2023 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com
══════════════════════════════════════════════════════════════════════════
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: 1763029
End of News EQS News Service
1763029 02.11.2023 CET/CEST
References
Visible links
1. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=0f51707980ec28aa6913e5887cb44c51&application_id=1763029&site_id=apa_ots_austria&application_name=news
2. g.reischl@ats.net
3. p.gebhardt@ats.net
4. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=0f51707980ec28aa6913e5887cb44c51&application_id=1763029&site_id=apa_ots_austria&application_name=news
OTS-ORIGINALTEXT PRESSEAUSSENDUNG UNTER AUSSCHLIESSLICHER INHALTLICHER VERANTWORTUNG DES AUSSENDERS. www.ots.at
© Copyright APA-OTS Originaltext-Service GmbH und der jeweilige Aussender