AT&S Austria Technologie & Systemtechnik AG / Quarter Results
24.01.2008
Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Results for third quarter 2007/08, ended 31 December 2007
AT&S records strongest first nine months sales in its history, increasing
earnings per share (EPS) by 36% to a new high of EUR 1.46.
AT&S posted revenues of EUR 368.3m for the first three quarters of
financial 2007/08, 3% higher than in the same period last year. Third
quarter revenues were about EUR 126.6m, about 1% up on 2006/07 despite the
strong decline in the US dollar and the almost total absence compared
with the previous year of assembly contracts.
Gross profit for the first three quarters of the year of EUR 67.6m was up
19% year-on-year, and the third quarters gross profit of EUR 23.8m was 39%
higher than in the same period last year. The gross margin for the first
three quarters reached 18.3% (Q13 06/07: 15.9%), with 18.8% (Q13 06/07:
13.6%) for the third quarter.
EBIT for the first nine months came to EUR 33.8m (up 20%), and the EBIT
margin was 9.2% (Q1-3 06/07: 7.9%). In the third quarter EBIT reached EUR
11.6m, a year-on-year increase of 22%. The EBIT margin advanced to 9.2%
(Q13 06/07: 7.6%).
Profit before tax for the first three quarters was EUR 36.4m (up 30%), with
pretax profit for the third quarter amounting to EUR 13.2m (up 36%).
Net income for the first nine months of EUR 33.3m (up 25%), was the highest
in the Groups history. Net income for the third quarter amounted to EUR
11.7m (up 42%).
Net debt at 31 December 2007 amounted to EUR 157.2m (EUR 79.0m a year
earlier), with net gearing at 68.0%. The increase in net borrowings of EUR
47.3m since 31 March 2007 is largely attributable to capital investment in
further extension of the Shanghai plants, payment of dividends and the
repurchase of own shares.
Outlook
AT&S does not expect any significant improvements in the US dollar in the
fourth quarter. This means that the currency will have fallen an average of
about 10% since this time a year ago. Prices for a high proportion (about
68%) of the telecoms business are dependent on the US dollar, as our
competitors are almost exclusively from countries whose currencies are
linked to it. That said, AT&S expects fourth quarter sales to be roughly at
the same level as a year earlier.
AT&S has now established a significant proportion of its production for the
telecoms market in the extended US dollar area. Since the remaining
currency exposures have been hedged, the impact of dollar exchange losses
was largely confined to revenues and had a much reduced effect on earnings.
Based on its excellent performance over the first three quarters and the
success of its hedging activities, AT&S continues to be optimistic about
the outlook for the Groups net income and EPS for the whole of the
financial year, and reaffirms guidance for the latter of EUR 1.601.70.
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Information and Explaination of the Issuer to this News:
Information and notes on this stock exchange announcement by the Company
Results in accordance with IFRS (in EUR m, earnings per share (EPS) in
EUR):
Q13 2007/08 compared with Q13 2006/07 <pre>
Q1-3 07/08 Margin Q1-3 06/07 Margin
Total revenues 368.3 357.8
Gross profit 67.6 18.3% 56.8 15.9%
EBITDA 60.1 16.3% 58.6 16.4%
EBIT 33.8 9.2% 28.3 7.9%
Net income 33.3 26.5
EPS 1.46 1.07
Net debt 157.2 79.0
Net gearing 68.0% 33.7%</pre>
Q3 2007/08 compared with Q3 2006/07 <pre>
Q3 07/08 Margin Q3 06/07 Margin
Total revenues 126.6 125.3
Gross profit 23.8 18.8% 17.0 13.6%
EBITDA 21.1 16.7% 20.3 16.2%
EBIT 11.6 9.2% 9.5 7.6%
Net income 11.7 8.2
EPS 0.52 0.34</pre>
Notes to results for first three quarters of 2007/08
Record earnings per share. Revenues and profitability exceed results for
the first three quarters of 2006/07 despite weakness of US dollar.
Product mix and capacity utilization in the period were both satisfactory.
The fourth production line entered into service at the second Shanghai
site. Work has also begun on the ramp-up of the third plant.
Strong sales in AT&Ss core printed circuit board manufacturing business
more than compensated for the considerable fall in Service segment orders
(Q3 2007/08: EUR 1.7m; Q3 2006/07: EUR 20.4m) and the effects of a
considerably weakened US dollar (down by an average of 12%). Profitability
was also again up noticeably, even compared with the strong performance of
the first three quarters of 2006/07. Gross profit and net income for the
period both reached their highest levels in the Groups history.
The relatively new project-driven Service business provides design and
assembly services as well as PCB procurement services. The business model
is geared towards offering customers, mainly industrial operations in
Europe, a comprehensive portfolio of services at competitive rates. Orders
for customers from other sectors are also accepted as and when they arise:
last year this resulted in a number of major orders from the
telecommunications sector. These orders were filled as required and came to
an end in the spring of 2007. In the first three quarters of 2006/07
Service business accounted for about 12% of Group sales. Although there
have been no orders of comparable size in the current financial year,
Services still contributed EUR 7.4m to total revenues.
AT&Ss greatest competitors in the telecommunications market are Asian
companies operating in the extended US dollar area. Prices for such PCBs
are therefore dollar-linked. The decline of the dollar against the euro has
pushed down telecoms PCB prices, with a consequent reduction in revenues.
As AT&S has already established a large part of its production for the
telecommunications market in this extended US dollar area, these exogenous
effects have no material impact on the Groups results. The major effects
of exchange rate fluctuations are thus already reflected at the gross
profits stage. Other currency exposures are protected by hedges.
The effective tax rate for the first nine months was about 11.7%. Earnings
per share were up by about 36% year-on-year to reach a new record high of
EUR 1.46.
With 6,452 employees at 31 December 2007, the AT&S headcount again reached
a record level, with the bulk of the growth in China.
In the first three quarters, 68% of revenues was generated by the telecoms
business, with handheld products. Industrial/medical contributed 20%, and
automotive customers roughly 10%. As discussed above, Services (assembly,
trading and design) made up 2% of total revenue.
Net capital investment in the first nine months of EUR 83.3m was largely
for further expansion of our Shanghai facilities.
Share buy-back program
As at 31 December 2007, AT&S held 2,574,171 treasury shares, equivalent to
about 9.9% of issued share capital. About 51% of the shares are in the free
float.
The results and the Excel format interim report (not including notes) for
the first three quarters of 2007/08 were posted today at 8am (CET) on the
investors section of www.ats.net. The quarterly report will be available in
.pdf format from early February.
For more information please contact Hans Lang, IRO, Tel. +43 (0)1 68300
9215, e-mail: h.lang@ats.net.
DGAP 24.01.2008
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Language: English
Issuer: AT&S Austria Technologie & Systemtechnik AG
Fabriksgasse 13
8700 Leoben
Österreich
Phone: +43 (1) 3842 200-0
Fax: +43 (1) 3842 200-216
E-mail: info@ats.net
Internet: www.ats.net
ISIN: AT0000969985
WKN: 922230
Indices: TecDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, München, Hamburg, Düsseldorf
End of News DGAP News-Service
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DGAP-Adhoc: Results for third quarter 2007/08, ended 31 December 2007
| Source: EQS Group AG