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PCB |
The coronavirus forces AT&S to adjust its financial outlook
The spreading of the coronavirus disease is currently impacting the production of AT&S in China. Due to this development, the company expects its revenue to fall short of expectations in the fourth quarter of the current financial year.
AT&S has therefore adjusted its revenue and earnings forecast (previously: revenue at the prior-year level of EUR 1,028.0 million; EBITDA margin between 20% and 25%) and expects revenue to amount to EUR 960 million, with an EBITDA margin in the range of 18% to 20%, the company states in an update.
Subject to staff availability, the plants in Shanghai and Chongqing II will start production in the week of 10 February 2020 after extended New Year’s holidays. The Chongqing I plant resumed production at reduced capacity after the New Year’s celebrations as planned.
The Austrian manufacturer currently considers the following aspects to influence the development in the coming months: a deterioration of the current general conditions, the provision of production materials and personnel, processes in the supply chain and the demand situation.
AT&S currently employs roughly 7'000 people in China and produces the majority of the group’s revenue there. The objective is to resume production as soon as possible in order to process existing orders and contracts.
