AT&S submit excellent results

Citation

(2010), "AT&S submit excellent results", Circuit World, Vol. 36 No. 4. https://doi.org/10.1108/cw.2010.21736dab.001

AT&S submit excellent results

Article Type: Industry news From: Circuit World, Volume 36, Issue 4

For the first quarter of financial year 2010/2011, AT&S reported one of its best first quarter results. The 14 per cent increase in revenues compared with the previous quarter meant not only a respectable pre-tax profit, but was also substantially in excess of both AT&S forecasts and market expectations. The Earnings before interest and tax (EBIT) margin also improved, and the net gearing ratio as a consequence significantly dropped.

Table I

Revenues for the first quarter of 2010/2011 were up 14 per cent compared with the last quarter of the previous financial year, and 37 per cent higher than in the first quarter of 2009/2010. EBIT for first quarter 2010/2011 – adjusted for non-recurring items – came to €10.1 million (m), which was 14 per cent higher than in the preceding quarter and nearly equalling the year before the financial crisis (Table I).

Although net capital investment rose from €2 m in the previous quarter to €19 m in the first quarter of 2010/2011, the Group’s gearing ratio fell by more than 24 percentage points to 62 per cent. “The business results for our first quarter look extremely promising,” says CEO Andreas Gerstenmayer. “Our focus on the high-end market is paying off handsomely, primarily because the global economy is recovering quicker than we were able to anticipate only three months ago.”

AT&S is planning to expand its capacity in Shanghai (China) and Nanjangud (India). However, respect for the environment is a major concern of AT&S’s management all around the world. “For example, during the last quarter we received the ‘Model Enterprise Award’ by Shanghai Water Authority for our outstanding contribution to water conservation,” explains Gerstenmayer.

“We are currently examining a number of investment options for our plant in Leoben-Hinterberg. The weakling of the Euro may allow us to improve our ability to produce in Europe,” explains Gerstenmayer. “In India, on the other hand, we still have some homework to do, and the stronger dollar is not necessarily playing in our cards. But overall, I am pretty confident that – as long as the prospects for the world economy remain favourable – we have put ourselves in an excellent strategic position to add value to our customers and to further enhance our competitive edge.”

As of 30 June 2010, AT&S employed 6,541 people at its production sites in Austria, India, China and Korea, and in a total of 16 sales offices around the world.