PCB |
AT&S with revenue decline of 7.4%
The Austria-based PCB manufacturer AT&S reported a decline of revenues by 7.4% and an under-utilisation of all if facilities, in particular in the 4th quarter of financial year 2008/09 (ending 31.03.2009).
Printed circuit board business is fixed costs intensive and therefore, under-utilisation causes pressure on margins. The gross profit fell by 25.7%; the gross profit margin from 18.4% to 14.7%, the company reports. The financial year 2008/09 earnings were adversely affected by restructuring at Leoben-Hinterberg facility and write downs at AT&S Korea. Adjusted for non-recurring items and considering the current market environment, solid results
have been achieved, the report continues.
Outlook: Focus on cash-flow
Analysts expect the global printed circuit board industry’s sales to fall by around 16% in 2009. It cannot be expected that AT&S will be able to retreat from this trend. The reorientation of the Mobile Devices strategy will entail loss of market share. Hence, the production capacities already installed allow AT&S to limit investments (CAPEX). For financial year 2009/10 investments of up to EUR 30 million are scheduled. However, approximately half of which result from projects already started in business year 2008/09. AT&S expects the first quarter of financial 2009/10 to show lower revenues and weaker ordinary results than in the previous quarter.
Outlook: Focus on cash-flow
Analysts expect the global printed circuit board industry’s sales to fall by around 16% in 2009. It cannot be expected that AT&S will be able to retreat from this trend. The reorientation of the Mobile Devices strategy will entail loss of market share. Hence, the production capacities already installed allow AT&S to limit investments (CAPEX). For financial year 2009/10 investments of up to EUR 30 million are scheduled. However, approximately half of which result from projects already started in business year 2008/09. AT&S expects the first quarter of financial 2009/10 to show lower revenues and weaker ordinary results than in the previous quarter.
