PCB | July 22, 2010
AT&S post best Q1 in history
AT&S has started its financial year 2010/11 with one of the best first quarter results in its history.
The 14% increase in revenues compared with the preceding quarter meant not only a respectable pre-tax profit, but was also substantially in excess both of AT&S forecasts and of market expectations. The EBIT margin also improved, and net debt was significantly reduced. Revenues for the first quarter of 2010/11 came to EUR 114m, some 37% higher than in the first quarter of 2009/10. Earnings before interest and tax (EBIT) for first quarter 2010/11 – adjusted for non-recurring items – came to EUR 10.1m, which was 14% higher than in the preceding quarter and almost at the same level as before the crisis. Although net capital investment rose from EUR 2m in the previous quarter to EUR 19m in the first quarter of 2010/11, the Group’s net debt ratio fell by more than 24 percentage points, resulting in a net gearing of 62%. AT&S is planning to further expand capacity in its facilities in Shanghai (China) and Nanjangud (India). In its expansion, respect for the environment and safety is a major concern of AT&S’s management at all its locations worldwide. AT&S is raising its outlook for the current financial year – assuming stable exchange rates, sales revenues are now projected to rise to EUR 470m - 500m, with an EBIT margin ≥9%. The actual capital spent during this financial year is estimated to be in the region of EUR 100m - EUR 110m.