AT&S earnings reach record €14 million in 2Q

AT&S’s revenues in 2Q of 2008/09 totalled €119.0m, down 6% on the same period last year. In the first two quarters of financial 2008/09 revenues amounted to €234.2m, 3% less than in the comparable period in 2007/08. Gross profit for the second quarter of €23.2m was 7% less than a year ago, and the first two quarters’ gross profit of €39.1m was 11% down. The gross margin in the second quarter was 19.5% (2007/08: 19.7%), and in the first two quarters 16.7%, compared with 18.1% a year ago. EBIT in the second quarter was up 4% to €14.9m, with the EBIT margin climbing to 12.6% (11.4%) For the first six months, EBIT was €220.6m (down 7%), and the EBIT margin fell to 8.8% (9.2%). Income before tax for the second quarter rose 7% to €15.0m, while for the first two quarters it was €20.3m, down 12%. Net income in the second quarter reached a record €13.6m, a gain of 9.3%, while for the first six months it was €18.6m, down by 14%. Net debt at 30 September 2008 amounted to €171.9m (€150.0m a year earlier), with net gearing at 66.3%. The increase in net borrowings of €15.6m since 31 March 2008 is largely attributable to capital investment in further extension of the Shanghai plants and the payment of dividends. In the first quarter of financial 2008/09 AT&S placed a five-year €80 million bond, exchanging short-term for longer-term debt and improving its financial structure. Outlook Although capacity utilisation at AT&S’s plants is at present good, it is to be expected that the overall economic situation and global competition will make 2009 a difficult year. This means that adjustments to capacity in the Austrian facilities can not be excluded, nor possible effects on the value of goodwill at AT&S Korea.