08.05.2017,
11181 Zeichen
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
annual result
Dynamic growth continues: revenue up 6.8%, thus outperforming the market\nHighly profitable core business with an EBITDA margin of 25.4%-despite price pressure and temporarily lower capacities\nEBITDA negatively influenced by Chongqing start-up effects and price pressure on IC substrates\nOutlook 2017/18: stronger revenue growth than in 2016/17, profitability still influenced by start-up effects and market developments\nFor AT&S, a global technology leader for high-end printed circuit boards, the
financial year 2016/17 was a year with a very positive revenue development. At
the bottom line, however, the year was characterised by the longer start-up
phase of the IC substrate plant in China and price pressure in a highly
competitive environment.
Andreas Gerstenmayer, CEO of AT&S, commented: "The financial year 2016/17 was
challenging on our path to our new positioning - from a high-end printed
circuit board producer to a provider of high-end connectivity solutions. We are
quite satisfied with the development of revenue: high capacity utilisation,
continued stable demand in the core business and the first contributions to
revenue from Chongqing helped us generate record revenue. Once again, we
significantly outperformed the entire market, which declined during the same
period. Profitability in the core business is still high, which shows that we
are positioned in the right markets with the right customers. The partial
upgrade of the Shanghai plant to the next technology generation is proceeding
well. However, the start-up of the IC substrate plant in China kept us very
busy: by the end of the financial year, the plant for IC substrates had not yet
reached the planned output and efficiency level due to technical challenges
with the equipment. We have largely resolved the technical issues and clearly
improved operationally. Unfortunately, significant price pressure in the area
of IC substrates overcompensate this development. The semiconductor industry,
which we supply with IC substrates, leaves technology generations in the market
for longer than in the past, and demand for the relevant applications such as
desktop computers and notebooks continued to decline. We are working on
appropriate solutions and are still convinced that this is the right step for
profitable growth of AT&S in the future."
Asset, financial and earnings position AT&S increased revenue by 6.8% from EUR
762.9 million to EUR 814.9 million in the reporting period as core business was
still growing and first revenues were generated with IC substrates, and thus
slightly exceeds the forecast for the year.
Based on the start-up effects for the Chongqing project (EUR 71.2 million) and
continued price pressure, especially in the area of mobile devices, EBITDA
decreased from EUR 167.5 million to EUR 130.9 million. As the Chinese renminbi
was lower, exchange rate effects had a positive impact of EUR 26.0 million in
EBIDTA. Adjusted* EBITDA amounted to EUR 194.8 million, thus exceeding the high
value of the previous year by 8.1%. The EBITDA margin was at 16.1% and thus
-5.9 percentage points below the very high prior-year level of 22.0%. The
adjusted margin, at 25.4%, clearly exceeded the high adjusted level of 23.7% of
the previous year.
Depreciation of property, plant and equipment and amortisation of intangible
assets amounted to EUR 124.7 million (previous year: EUR 87.4 million) and
increased by EUR 37.3 million, primarily due to the Chongqing project.
Consequently, EBIT declined by EUR 70.4 million or -91.4% to EUR 6.6 million.
Adjusted* EBIT rose by 15.3% to EUR 119.0 million (previous year: EUR 103.2
million). The EBIT margin was 0.8% (previous year: 10.1%). The adjusted* margin
amounted to 15.5% and thus exceeded the adjusted prior-year level of 13.6% by
1.9 percentage points.
Finance costs - net deteriorated from EUR -8.1 million to EUR -17.5 million,
which was primarily attributable to exchange rate effects. Tax expense remained
constant at EUR 12.0 million (previous year: EUR 12.9 million).
The profit for the year dropped from EUR 56.0 million in the previous year to a
loss of EUR -22.9 million and earnings per share declined from EUR 1.44 to EUR
- 0.59.
Cash flow and statement of financial position Cash flow from operating
activities before changes in working capital amounted to EUR 90.5 million vs
EUR 145.9 million in the previous year. Cash flow from investing activities -
investments in the plants under construction in Chongqing, technology
investments in other locations and investments in financial assets - amounted
to EUR -161.1 million (previous year: EUR - 342.2 million.).
Equity decreased by 5.1% to EUR 540.1 million due to the loss for the year and
the dividend paid in the amount of EUR 14.0 million. The resulting equity
ratio, at 37.6% was -4.7 percentage points below the value of March 31, 2016,
as expected.
Net debt rose from EUR 263.2 million at 31 March 2016 to EUR 380.5 million.
This expected increase resulted from the high investment activities and the
effects related to the start-up of the Chongqing project. The net gearing ratio
increased to 70.5% (previous year: 46.3%). AT&S has cash liquid funds totalling
EUR 203.5 million available (previous year: EUR 171.9 million). In addition,
AT&S has EUR 200.9 million of unused credit lines as a financing reserve.
Key financials:
According to IFRS; 2015/16 2016/17 Change
in EUR million 01.04.2015- 01.04.2016-
31.03.2016 31.03.2017
Revenue 762.9 814.9 6.8%
EBITDA 167.5 130.9 -21.9%
EBITDA margin (in 22.0 16.1 -
%)
EBITDA adjusted* 180.2 194.8 8.1%
EBITDA margin 23.7 25.4 -
adjusted (in %)*
EBIT 77.0 6.6 -91.4%
EBIT margin (in %) 10.1 0.8 -
EBIT adjusted* 103.2 119.0 15.3%
EBIT margin 13.6 15.5 -
adjusted (in %)*
Profit/loss for the 56.0 -22.9 > -100%
year
Cash flows from 145.9 90.5 -38.0%
operating
activities before
changes in working
capital
Net CAPEX 254.3 240.7 -5.3%
Equity ratio 42.3 37.6 -
Net debt 263.2 380.5 44.6%
Earnings per 1.44 -0.59 > -100%
average number of
shares outstanding
(in EUR)
Mobile Devices & Substrates segment with revenue growth; earnings still
influenced by Chongqing start-up effects The increase in revenue by 6.2% to EUR
573.0 million in the Mobile Devices & Substrates segment is primarily based on
revenue from Chongqing. Compared with the previous year, the segment's EBITDA
declined by EUR 57.9 million or -45.8% to EUR 68.5 million due to start-up
effects of the Chongqing project, the substantial increase in price pressure on
IC substrates and the lost capacities in the fourth quarter resulting from a
partial upgrade of the Shanghai plant. The EBITDA margin amounted to 12.0%
(previous year: 23.4%). The adjusted* EBITDA was EUR 135.7 million (previous
year: EUR 139.6 million), resulting in an adjusted* EBITDA margin of 25.9%,
which is at the prior-year level of 26.0%.
Automotive, Industrial, Medical segment with increases in revenue and earnings
In the Automotive, Industrial, Medical segment, revenue was up 7.6% to EUR
351.5 million. This positive development affected all sectors, with Automotive
and Industrial recording product-mix-related revenue growth, while Medical grew
in both qualitative and quantitative terms. EBITDA rose by 71.1% to EUR 51.5
million, which was a result of operational improvements and the release of
provisions for restructuring. The EBITDA margin thus amounted to 14.6% after
9.2% in the previous year. The adjusted* EBITDA was EUR 48.1 million, which
corresponds to an EBITDA margin of 14.0% (previous year, adjusted: 9.2%).
Status Chongqing As at 31 March 2017, AT&S invested EUR 455.3 million in the
Chongqing project. The significant operational improvements in the IC substrate
plant, which had already been achieved, were overcompensated by price pressure.
The second production line was started in December 2016 and is running
according to plan. Both lines should reach the planned output and efficiency
level in the second half of 2017. In plant 2, the first production line is
being converted to the mSAP technology, while the second production line for
mSAP is undergoing qualification.
Outlook for the financial year 2017/18 AT&S is convinced to have taken the
right steps for a broader positioning in a changing supply chain with its
strategic focus on high-end technologies and applications in the existing
business as well as with the establishment of an expanded technology portfolio
based on IC substrates and the next technology generation (mSAP).
The transformation from a high-end printed circuit board producer to a high-end
interconnect solutions provider is a prerequisite for future profitable growth,
since only through continuous technology advancements and the corresponding
investments will AT&S be able to secure its position as tier-one supplier for
technology and world market leaders.
Effects of the financial year 2016/17 will continue and also influence the
business development in 2017/18: the market development for IC substrates,
based on the deceleration of Moore's Law, and lower demand for computing
applications (desktop computers, notebooks) lead to continued price pressure on
IC substrates. Serial production for the next technology generation (mSAP) for
mobile devices will start in the second quarter of the financial year 2017/18;
this technology is currently being installed in Shanghai and in the second
plant in Chongqing with the aim to continue to position AT&S as a leading
supplier for mobile devices. In its core business, AT&S expects continuous
demand in all customer segments in an extremely competitive environment.
EUR 25 million in
the financial year 2017/18 will impact EBIT.
*Adjusted for Chongqing effects and release of provision for restructuring
Attachments with Announcement:
----------------------------------------------
http://resources.euroadhoc.com/us/7g6SAXXO
http://resources.euroadhoc.com/us/7a37Shv4
company: AT & S Austria Technologie und Systemtechnik Aktiengesellschaft
Fabriksgasse 13
A-8700 Leoben
phone: 03842 200-0
mail: e.koch@ats.net
WWW: www.ats.net
sector: Technology
ISIN: AT0000969985
end of announcement euro adhoc
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