07.11.2019,
8919 Zeichen
Corporate news transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is responsible for the content of this announcement.
Mid Year Results
Leoben -
Well on track at the operating and strategic level\nMacroeconomic environment partially burdens earnings\nMarket for mobile devices was characterised by lower ramp of the new smartphone generation\nHalf-year revenue down slightly by 5%; EBITDA margin, at 20.6%, in the target range\nManagement Board confirms annual and medium-term guidance\nIn an overall challenging environment AT&S held its ground well in the first
half-year. Revenue, at EUR 490.3 million, declined slightly by 5.1% compared to
the previous year: increases in sales volume in the IC Substrates and Medical &
Healthcare segments were offset by declining figures in the Mobile Devices and
Industrial segments. The Automotive segment maintained the level of the previous
year despite the current radical changes in the mobility market.
The decline in revenue in the Mobile Devices segment is attributable to a lower
ramp of the latest smartphone generation and the changing product mix.
Consequently, the Automotive and Industrial segments are currently faced with
lower demand and higher price pressure.
The general macroeconomic situation also continues to contribute to the
currently challenging environment: trade disputes (in particular between the USA
and China) and political uncertainties (i.a. Brexit) have led to caution in the
industry. Uncertainties in the automotive industry regarding the future
powertrain and far-reaching technological change as well as the weak industrial
business caused underutilization also at AT&S.
The current market situation and investments in the future of AT&S took a toll
on earnings: EBITDA amounted to EUR 101.1 million (previous year: EUR 138.3
million) and the EBITDA margin to 20.6% (previous year: 26.8%). However, EBIT,
at EUR 29.4 million (previous year: EUR 71.9 million), picked up significantly
again compared with the first quarter of this financial year (EUR -0.6 million).
Finance costs - net improved from EUR -0.1 million in the previous year to EUR
2.8 million. Net profit for the period amounted to EUR 19.5 million (previous
year: EUR 55.4 million).
In preparation for future technology generations and to implement the
modularization strategy, AT&S heavily invests in research and development. These
expenditures also make the company future-proof and increase the earnings
potential in the medium term.
Andreas Gerstenmayer, CEO of AT&S AG: "We consider
the current developments in our markets a great opportunity for significant
growth. However, as entrepreneurs we must also be prepared to invest in building
the relevant knowledge. As the technology leader, we are best equipped to ensure
that the expansion of expertise is implemented successfully."
The financial position remained very solid at the reporting date. The equity
ratio decreased to 42.5%, down 2.5 percentage points compared with 31 March
2019, with the balance sheet total increasing slightly. The two main raisons
were currency effects (EUR -23.6 million) and the dividend payment (EUR -23.3
million). Net debt rose by EUR 83.4 million or 55.5% from EUR 150.3 million to
EUR 233.7 million. The net gearing ratio increased from 18.7% to 30.4%.
Cash and cash equivalents amounted to EUR 259.6 million. In addition, AT&S has
financial assets of EUR 243.5 million and unused credit lines of EUR 185.4
million to secure financing of the future investment programme and any
repayments due in the short term.
______________________________________________________________________________
|Group | 2018/19 | 2019/20 | |
|Acc. to IFRS; in | 01.04.-30.09.2018 | 01.04.-30.09.2019 | Change |
|EUR_million_______|___________________|___________________|___________________|
|Revenue___________|______________516.9|______________490.3|______________-5.1%|
|EBITDA____________|______________138.3|______________101.1|_____________-26.9%|
|EBITDA margin (in | 26.8| 20.6| |
|%)________________|___________________|___________________|___________________|
|EBIT______________|_______________71.9|_______________29.4|_____________-59.2%|
|EBIT_margin_(in_%)|_______________13.9|________________6.0|___________________|
|Profit/loss for | 55.4| 19.5| -64.7%|
|the_period________|___________________|___________________|___________________|
|Cash flow from | | | |
|operating | 58.0| 62.2| 7.2%|
|activities________|___________________|___________________|___________________|
|Net_CAPEX_________|_______________37.9|_______________92.0|______________>100%|
|Net_debt__________|_____________150.3*|___________233.72**|______________55.5%|
|Earnings per share| 1.32| 0.40| -70.0%|
|(_________________|___________________|___________________|___________________|
*As of 31.03.2019 **As of 30.09.2019
At mid-year, the Management Board adopted additional investments for a targeted
capacity increase at the locations in Chongqing and Leoben: in the coming five
years, up to EUR 1 billion will be invested in strengthening the business with
IC substrates. The investments will focus on Chongqing. AT&S implements the
project in close cooperation with a leading semiconductor manufacturer. In
addition to production, the partnership also comprises the technology
development of future substrate architectures. The first significant revenue
from this investment is expected for the financial year 2022/23. In view of its
steady earnings power, AT&S will use existing resources, among other things, to
finance the new project.
Regarding the background of this investment decision: as a result of the
increased use of artificial intelligence, ever greater data volumes are created
and have to be recorded and processed at ever greater speed. IC substrates,
which act as translators between the micro-world of the printed circuit board
and the nano-world of chips, enable the architectures required to do so. Market
demand for IC substrates for the application in high-performance computer
modules will increase significantly in the years to come. These investments
allow AT&S to strengthen its position in the market for IC substrates and to
further balance its product portfolio, thus reducing previous dependencies and
promoting the diversification of the customer portfolio. Andreas Gerstenmayer:
"The trend of miniaturization and modularization addresses many applications in
the electronics industry and consequently also the area of microprocessors. We
expect the circle of industries interested in our solutions to expand
substantially in the coming years."
As after the first quarter, the Management Board also confirms the earnings
forecast for the full year after the first half of the financial year: As demand
has picked up and capacity utilization is currently good in the Mobile Devices
segment, revenue is expected to be at the level of the previous year, with an
EBITDA margin in the range of 20% to 25%. This forecast is supported by the
further expansion of the customer and application portfolio in the Mobile
Devices segment and the investments made so far. They enable AT&S to partially
balance out market fluctuations.A volume of EUR 80 to 100 million is planned for
basic investments (maintenance and technology upgrades). Depending on the market
development, an additional EUR 100 million for capacity and technology upgrades
may be incurred. For the capacity expansion in the area of IC substrates,
expenses for investments of up to EUR 180 million are planned. Based on the
progress of the project, the Group's capital expenditures will total up to EUR
340 million.
The Management also confirms the medium-term guidance, which was increased after
the first quarter: As part of the strategy "More than AT&S", the Group expects
revenue to double to EUR 2 billion in the next five years (previous revenue
guidance at the beginning of the financial year: EUR 1.5 billion). This
corresponds to a compound annual growth rate (CAGR) of roughly 15%. Based on the
stronger focus on high-end applications, the historical trend of a continuous
and sustainable margin improvement can be continued, and an EBITDA margin in the
range of 25% to 30% can be achieved in the medium term. The Group's medium-term
ROCE target is more than 12%.
end of announcement euro adhoc
issuer: AT & S Austria Technologie & Systemtechnik Aktiengesellschaft
Fabriksgasse 13
A-8700 Leoben
phone: 03842 200-0
FAX:
mail: ir@ats.net
WWW: www.ats.net
ISIN: AT0000969985
indexes: VÖNIX, WBI, ATX GP
stockmarkets: Wien
language: English
Digital press kit: http://www.ots.at/pressemappe/18136/aom
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