PCB | July 23, 2009
AT&S: revenue declines by 27.7%
Difficult economic environment caused a decline of revenues by 27.7% compared to the 1st quarter of the last financial year and under-utilisation of all plants for the Austrian PCB manufacturer AT&S
Restructuring charges and underutilisations weigh on the earnings. AT&S has taken radical action to improve its strategic orientation and earnings potential, positioning itself optimally in the current global economic environment. The positive effects of these measures have not been felt immediately, but will begin to be noticeable in the coming quarters. This – together with extensive restructuring expenses – meant that AT&S’s results for the first quarter were its poorest for many years. Traditionally, the first quarter of the financial year is seasonally weak, but this year the economic crisis provided an additional damper. With unrelenting pressure on selling prices, almost all AT&S plants were having to contend with significant capacity under-utilisation, so that sales of EUR 83,2m were 15.5% down on the already depressed levels of the fourth quarter of 2008/09. In a fixed-costs-intensive business like printed circuit board production, capacity under-utilisation is directly linked to substantial pressure on margins. The ordinary operating results for first quarter 2009/10, i.e., excluding one-time expenses, showed a loss of EUR -11.8m as against a profit of EUR 5.6m for the same period last year, and earnings per share of EUR -0.59 compared with EUR 0.22 a year ago. “The results for the quarter just ended are certainly among the worst for many years. But as a consequence of a consistent implementation of its restructuring programme, AT&S will be correctly positioned for the future. Our results should already be better again in the coming quarters,” explains Harald Sommerer, CEO of AT&S. Particularly the Austrian Leoben-Hinterberg plant was hit by massive losses, as a result of falling volumes and declining selling prices. Urgent steps were required to ensure its long-term survival. Past years had already seen migration of much volume business to Asia, with consequent reductions in production capacity in Austria. However the increasingly dire world economic outlook caused customers to concentrate more and more on cutting their procurement costs to the minimum. The resulting intensifying pressure on AT&S’s selling prices meant that – given the level of existing costs – volume production in Austria was no longer sustainable: it has now all been transferred to Asia. The remaining activities at Leoben-Hinterberg are now being clearly focused on the European market. The necessary restructuring measures impacted the results for the first quarter with EUR 38.3m of additional expenses, so that the final operating results were EUR –50.1m, and earnings per share were EUR -2.23. Against this background, in the quarter just ended special attention was paid to giving the Group’s financial basis additional strength: a financing agreement totalling EUR 37m was negotiated for a period of 5 years in April 2009, further improving the term profile of AT&S’s borrowings. EUR 23m of this have already been called down. Since adequate lines of bank credit are available, Management sees the Group’s financial position as very sound. “In our view, the first quarter marked the low point in the present financial year,” comments Steen E. Hansen, CFO of AT&S, on the present business situation. For AT&S, the second and third quarters are traditionally the strongest, so that – despite the generally unfavourable economic climate – improvement in the order book, capacity utilisation and earnings is expected. In the light of the economic situation, however, it is not to be expected that the first quarter’s operating losses (even excluding restructuring expenses) can be entirely made good during the rest of financial 2009/10. The process of strategic adjustment will be completed with the current restructuring activities. Then, AT&S will be ideally positioned for the future. The three Austrian plants will focus on European markets exclusively. The factory in India will support European business with medium-sized PCB series using standard technologies. In addition to its home market, AT&S Korea will increasingly focus on Europe, where flexible and rigid-flex circuit boards are of growing importance. AT&S’s plant in Shanghai, the largest HDI production facility in China, manufactures high volume HDI circuit boards for the global market.
Big Ass Fans adds third Hentec/RPS machine Complementing the purchase of two Hentec Industries/RPS Automation Vector 300 selective soldering machines in 2018, Big Ass Fans (BAF), a high-volume, low- speed (HVLS) airflow manufacturer, has just added a third machine to its factory in Newman Lake, Washington.
CE3 Electronics Inc. taps MIRTEC for 3D AOI technology Canada-based CE3 Electronics has purchased a MIRTEC MV-6 OMNI 3D AOI machine.
Gémosz is still looking to grow – but the pandemic brought new perspectives Winston Churchill famously said, “Never let a good crisis go to waste”. While this was said in a vastly different context than the current crisis of the COVID-19 pandemic, there is still truth to the fact that a crisis not only allows for change – but sometimes forces it.
North American PCB industry sales up 4.3% in April The IPC says that total North American PCB shipments in April 2020 were up 4.3% compared to the same month last year. Compared to the preceding month, April shipments fell 18.2%.
Volkswagen intensifies e-mobility activities in China Volkswagen has initiated the next chapter for its business in China. The automotive giant plans to increase its share in JAC Volkswagen, its joint venture for e-mobility.
GPV Selects Aegis as global smart factory partner Driven originally by accelerating customer expectations for traceability, GPV has selected Aegis’ FactoryLogix Smart digital manufacturing solution, targeting multiple values and benefits.
REDCOM EMS expands certification for medical device manufacturing New York-based REDCOM EMS has secured ISO 13485:2016 certification, complementing the company’s existing ISO 9001:2015 and AS9100D certifications.
Ozark Integrated Circuits nabs U.S. Air Force grant Arkansas-based Ozark Integrated Circuits Inc., located in the Arkansas Research and Technology Park at the University of Arkansas, has received a USD 750,000 award from the U.S. Air Force.
Norwegian EMS adds employees to Polish unit The last couple of months Norautron has welcomed three new colleagues at its office in Sdunska Wola, Poland.
Daimler’s battery production in Kamenz gradually increases production Local battery production is described as an important success factor for Mercedes-Benz AG’s electric offensive and a key element to flexibly and efficiently meet the global demand for electrified vehicles.
Tepcomp invests in new additional production line Finnish EMS provider, Tepcomp Group, has made a significant investment at its production plant in Turku. The new surface mount technology production line will significantly improve the productivity and energy efficiency of the plant.
Valoe is on schedule with both production and expected deliveries Valoe says it will start manufacturing IBC test modules in Juva, Finland in June and cell deliveries from Lithuania to customers is scheduled to start according to plan.
AMTE Power and Britishvolt sign MoU for GigaFactory AMTE Power and Britishvolt plans to investigate collaborating to build the UK’s first full cycle battery cell GigaPlant, servicing the automotive and energy storage markets.
ALLPCB’s new SMT factory has launched production On May 10 2020, ALLPCB’s new – self-operated – SMT factory in Guangde, Anhui Province, China was officially put into production.
Schweizer starts production at its new location in China Following a construction period of one and a half years, production has now started at the company’s new high-tech printed circuit board plant in Jiangsu, China.
Jenoptik supplies generators to a US customer Through its Vincorion investment, Jenoptik received a long-term order for generators that an unnamed US customer is integrating into military vehicles.
Rolls-Royce takes heavy hit from COVID-19 – reduces workforce by 9000 The impact of COVID-19 on Rolls-Royce and the whole of the aviation industry is unprecedented. RR has already taken action to strengthen the financial resilience of its business and to reduce cash expenditure in 2020. However, this will not be enough.
Data Link Solutions to provide MIDS cabinet terminals to US Navy The U.S. Navy has awarded a USD 3.2 million production contract to Data Link Solutions (DLS), a joint venture between BAE Systems and Collins Aerospace, for new Multifunctional Information Distribution System (MIDS) cabinet terminals.
Incap restarts production in India In a move to contain the COVID-19 pandemic, the government of India instructed all state governments to introduce a lockdown in March. As a consequence, Incap had to close its factory in Karnataka, India on 23 March.
NAND Flash Revenue Undergoes 8.3% QoQ Growth in 1Q20 NAND Flash bit shipment in 1Q20 was relatively on par with 4Q19, says the DRAMeXchange research division of TrendForce. The overall ASP of NAND Flash products also climbed during the period. As a result, the global NAND Flash revenue for the quarter went up by 8.3% QoQ to USD 13.6 billion.
Gorenje reduces the number of layoffs At the end of April, due to a sharp drop in orders and revenues as a result of the COVID-19 pandemic, the Hisense Europe Group launched a redundancy program in four companies in Slovenia.
NA semiconductor equipment industry posts April 2020 billings North America-based manufacturers of semiconductor equipment posted USD 2.26 billion in billings worldwide in April 2020 (three-month average basis), according to SEMI.
AWS Electronics to wear the Incap name Following the acquisition of AWS Electronics Group by Incap Corporation in January 2020, the company's units in the UK and Slovakia will now be trading as Incap Electronics UK Ltd. and Incap Electronics Slovakia s.r.o.Load more news
- Rolls-Royce takes heavy hit from COVID-19 – reduces workforce by 9000
- COVID-19 highlights the gravity of the secondary market for SME
- China falls far short of its "Made-in-China 2025" goal
- Data Link Solutions to provide MIDS cabinet terminals to US Navy
- GlobalFoundries to implement ITAR at US manufacturing facility