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AT&S weathers market challenges
In an overall challenging environment AT&S held its ground well in the first half-year. Revenues amounted to EUR 490.3 million, declined slightly by 5.1% compared to the previous year.
The company's increases in sales volume in the IC Substrates and Medical & Healthcare segments were offset by declining figures in the Mobile Devices and Industrial segments. The Automotive segment maintained the level of the previous year despite the current radical changes in the mobility market, the company writes in a press release.
AT&S attributes the decline in revenue in the Mobile Devices segment to a lower ramp of the latest smartphone generation and the changing product mix. Consequently, the Automotive and Industrial segments are currently faced with lower demand and higher price pressure.
The general macroeconomic situation also continues to contribute to the currently challenging environment: trade disputes (in particular between the USA and China) and political uncertainties (i.a. Brexit) have led to caution in the industry. Uncertainties in the automotive industry regarding the future powertrain and far-reaching technological change as well as the weak industrial business caused underutilisation also at AT&S.
The current market situation and investments in the future of AT&S took a toll on earnings: EBITDA amounted to EUR 101.1 million (previous year: EUR 138.3 million) and the EBITDA margin to 20.6% (previous year: 26.8%). However, EBIT, at EUR 29.4 million (previous year: EUR 71.9 million), picked up significantly again compared with the first quarter of this financial year (EUR -0.6 million). Net profit for the period amounted to EUR 19.5 million (previous year: EUR 55.4 million).
In preparation for future technology generations and to implement the modularization strategy, AT&S says it is investing heavily in research and development.
“We consider the current developments in our markets a great opportunity for significant growth. However, as entrepreneurs we must also be prepared to invest in building the relevant knowledge. As the technology leader, we are best equipped to ensure that the expansion of expertise is implemented successfully,” says Andreas Gerstenmayer, CEO of AT&S AG.
