PCB | February 11, 2009
AT&S saw a sharp downturn in customer order intake in Q3
Already in the first quarter of financial 2008/09, it was clear to AT&S that the prospects for the real economy were increasingly gloomy. Our results for the following three months were still strong, but in the third quarter, in mid-November, we experienced a sudden, sharp downturn in customer order intake.
November is generally one of the strongest months in the AT&S financial year, before demand falls off again in December in anticipation of the impending holiday season. This meant capacity under-utilisation in November rather than full capacity operation, with the trend worsening in December; high fixed costs mean that this directly impacts the Group’s profitability. In addition, there were also major non-recurring items. Migration of volume orders to Asia has become progressively more noticeable in recent years, and this development has been exacerbated by the weakness of the US dollar, with which many Asian currencies are aligned. These currency effects alone pushed production costs in Asia significantly lower than anything achievable in Austria. The general tendency to relocate production to Asian factories recently reached a level that made it necessary to make adjustments to capacity at AT&S’s Austrian facility in Leoben-Hinterberg. Production capacity, measured in surface area of printed circuit boards manufactured, was reduced from 215,000 m2 to 130,000 m2. Some of the equipment no longer needed here will be transferred to the new plant in India, reducing investment costs there by about EUR 7.4m. In the course of the restructuring process, 293 of AT&S’s own staff and 159 contract workers are being made redundant. After restructuring, the facility will employ about 900 people. The costs of this reorganisation mean a EUR 20.2m charge in third quarter 2008/09, with approximately half of the amount payable immediately. AT&S Korea achieved a positive EBIT for the first time in October 2008, and its future development is viewed very positively. Its business plan has however had to be adapted to the global economic climate. This resulted in goodwill writedowns of EUR 5.6m, and tax loss carryforwards amounting to EUR 1.4m also had to be written off. AT&S’s positive EBIT after the first nine months of the financial year – despite the heavy one-time expenses – is impressive testimony to the Group’s strong operating performance. Adjusted for non-recurring items, results for the period were as follows:EBIT was EUR 28.1m, with an EBIT margin of 8%. EBITDA was up 0.7% on the same period a year earlier, to EUR 60.5m. The EBITDA margin was 17.2%. Consolidated net income was EUR 22.3m. Third quarter EBIT after adjustment for non-recurring items was EUR 7.5m, with an EBIT margin of 6.4%. Adjusted EBITDA came to EUR 19.2m, and the EBITDA margin was 16.4%. Consolidated net profit was EUR 3.7m after adjustments. AT&S has not been left unscathed by the economic crisis. Global demand for printed circuit boards will shrink considerably in 2009, and downward pressure on prices can be expected to increase in a number of different areas. Management is fully aware of the need to concentrate on two main strategic thrusts: strictest cost containment, and intensification of efforts to win profitable orders. Groupwide and at every level, an extensive program of cost savings is already in operation. Restructuring at Leoben-Hinterberg will also reduce the cost basis. Extreme caution will be exercised with respect to capital expenditure in the coming financial year. In China and India we have ample space and equipment available to be able to build up additional capacity very swiftly as soon as customer demand revives.
Teslas German venture comes to a halt following court order A court in Germany has ordered the US electric carmaker to stop clearing the forest at its future location outside Berlin.
Marposs expands with acquisition of Stil Precision metrology equipment supplier Marposs has acquired STIL S.A.S., a French company specializing in research, development, production and sales of optical measurement instruments.
Z-AXIS shares good news from 2019 Electronics design and CMS provider Z-AXIS Inc. released 2019 data showing showing robust revenue growth as well as an expansion to its workforce.
Fluidra reaches a deal to acquire Fabtronics Fluidra, a company within the pool and wellness equipment industry, has acquired Australian electronics manufacturer Fabtronics to strengthen its R&D capabilities and to incorporate complete, efficient and cost-effective electronics design and manufacturing solutions.
Garz & Fricke acquires Keith & Koep Hamburg-based Garz & Fricke Group has acquired Keith & Koep GmbH, located in Wuppertal, Germany. With this move, a new powerhouse for ARM-based embedded technologies in Europe has been formed.
ABB to close Hungarian plant – 1’000 jobs lost The power and automation company will close its production facility in Ozd, in northeastern Hungary, by the end of the year.
AT&S' plant Chongqing II back in operation Austrian PCB manufacturer, AT&S, announces that the Plant II at its Chinese location in Chongqing will resume operations.
Arçelik A.Ş files IP lawsuit against LG Arçelik A.S, owners of the Beko and Grundig brands, filed a lawsuit against LG Electronics and its subsidiaries in Germany and France for patent infringement in relation to the unlicensed implementation of the company’s direct drive technology in LG Electronics’ “6 Motion” washing machines.
Seagate unifying workforce at green Fremont site Data storage and management solutions provider Seagate Technology plc is consolidating its San Francisco Bay Area workforce by relocating the company’s Cupertino operations to its existing sustainable Fremont facility.
Coronavirus afflicts more electronic supply chains With the epidemic arriving at dawn of 5G’s mainstream deployment phase, the coronavirus has the potential to disrupt the progress of the next-generation wireless standard, as the crisis slows or threatens to slow the production of key smartphone components, including displays and semiconductors, according to Omdia.
Solid financial improvements for Kitron EMS provider Kitron could show off solid financial improvements, both for the fourth quarter and full year 2019.
Zollner resumes operations in China The German EMS provider Zollner says that its plant in Taicang is reopened. Work continues under strict safety conditions and not to the full extent.
Step-by-Step: Foxconn makes progress in WI Next construction phases of vertical construction, including steel placement, have commenced at Foxconn’s 296,000-square-foot Smart Manufacturing Center at the Wisconn Valley Science and Technology Park (WVSTP).
Eaton boosts offerings with acquisition of PDI Inc. Power management company Eaton has struck a deal to purchase Virginia-based Power Distribution Inc. (PDI), a supplier of mission critical power distribution, static switching, and power monitoring equipment.
BASF to set up cathode active material production in Germany BASF is planning a new battery materials production site in Schwarzheide, Germany, as part of its multi-step investment plan to support the European electric vehicle (EV) value chain.
Shipment from China to GPV sites worldwide has restarted Some of GPV's most important suppliers in China are back in operation which means that important shipment to GPV sites worldwide has restarted. However, not all supplies might be complete, the company says.
Orbit One expands with new test team in Poland The Swedish EMS provider is launching another test team within the group.
Volvo and Geely considers a combined company Volvo Car AB and Geely Automobile Holdings Limited are considering combining their businesses to create a strong global group, which would accelerate financial and technological synergies between the two companies.
Cepton nails major funding from Koito Lidar technology specialist Cepton Technologies Inc. has secured USD 50 million in Series C funding from Koito Manufacturing Co. Ltd., a Tier 1 provider of automotive lighting systems.
RoboSense obtains IATF 16949 certification Automotive LiDAR manufacturer, RoboSense, has obtained the IATF 16949 certificate in the automotive field, which now fully qualifies it to supply to automotive customers.
Manz to deliver assembly lines to Akasol for battery production Manz AG has received an order from the German Akasol AG for assembly lines to produce lithium-ion battery modules. The placing of the order with a total volume of up to EUR 20 million euros has been split into several tranches.
ZKW with new locations in Korea and China The ZKW Group ended 2019 by establishing a branch in Incheon, Korea, near Seoul.
Connected Community Networks picks up Introbotix Colorado-based Connected Community Networks (CCN), a provider of products and services for development, verification and manufacturing in the high-frequency electronics space, has acquired testing specialist Introbotix.
GPV's Chinese facility will remain closed The Chinese Central Government and the Chinese Epidemic Command Centre have prolonged the curfew in the provinces Hubei and Guangdong. Guangdong (Pearl River delta) is the second most affected province in China and also the province where GPV’s production site is situated.Load more news