LEOBEN, AUSTRIA – AT&S reported fiscal third quarter revenue of €346 million (US$415.9 million), up 31.6% year-over-year.
EBITDA for the quarter ended Dec. 31 was €76.4 million, an increase of 38.2% compared to the third quarter of the prior year. EBIT was €33 million, up 80.3%.
AT&S increased consolidated revenue 17.3% year-over-year to €883.8 million (US$1.06 billion) in the first three quarters of financial year 2020/21.
The successful startup of increased production capacity in Chongqing made a significant contribution to revenue growth, the firm says. The mobile devices segment and demand for module PCBs also had a positive effect. In the AIM business unit, the medical segment recorded revenue at the level of the previous year, while revenue in the industrial segment increased slightly. After a weak first half of the year, revenue in the automotive segment reached the level of the previous year in the third quarter.
EBITDA rose 19.4% to €187.6 million compared to the prior year period. This increase is primarily attributable to higher consolidated revenue. Currency effects, in particular due to the weaker US dollar, had a negative impact on revenue and earnings development.
EBIT improved 37.9% year-over-year to €65.8 million.
AT&S has intensified investments in research and development to prepare for future requirements.
"The corona pandemic has caused a digitalization boost in many areas of life,” said CEO Andreas Gerstenmayer. “In nearly all countries, data traffic has massively increased, strengthening, among other things, demand for ABF substrates. Due to these developments, we assume the markets in all our business segments will continue to grow in the future. We are currently massively expanding capacities and have thus created the basis for participating even more strongly in this growth and for a significant expansion of our market position in the area of ABF substrates. In addition, we successfully delivered the first orders for module printed circuit boards and generated revenue in the double-digit million range."
Cash and cash equivalents totaled €393.9 million.
For full-year 2020/21, AT&S adheres to its growth plans. Demand for ABF substrates will continue to be strong. The usual seasonality is expected for mobile devices in the fourth quarter. The positive trend in the automotive segment should continue. The fiscal fourth quarter is expected to see flat revenue compared to the prior year quarter. Slight growth is expected in the industrial and medical segments. The company now expects 2020/21 revenue growth of 17 to 19%.
"Operationally, AT&S will continue to build up new capacities, in particular for ABF substrates and module printed circuit boards. The capacity expansion in Chongqing strengthens our global market position and forms the basis for the company's further growth. In line with spending discipline, a reduced budget of up to €80 million is planned for basic investments (maintenance and technology upgrades) depending on the market development. As part of the strategic projects, management plans investments totaling up to €410 million for the financial year 2020/21, depending on the progress of projects, plus €30 million due to period shifts between the financial years.”
Ed.: €1 = US$1.20
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