LEOBEN, AUSTRIA – AT&S's revenues and margins improved in its second quarter ended Sept. 30, partially offsetting declines in the PCB fabricator's first quarter. 

Sales at the printed circuit board fabricator fell 24% to €814 million in the first half on a slower economic environment. Second-quarter sales increased 30% in the Electronics Solutions segment and 18% in the Microelectronics segment on a sequential basis. On a currency-neutral basis, overall sales decreased 21%.

Net income fell from €224 million to €49 million. This led to a decline in earnings per share of €4.50 from €5.52 to €1.02.

"Although the economic environment has changed fundamentally compared to the previous year and we were confronted with numerous challenges, we were able to continue the recovery that was already evident at the beginning of the fiscal year," said Andreas Gerstenmayer, CEO, AT&S. "We initiated efficiency and cost-optimization programs in good time. Not only are the measures taking effect faster than planned, they have also significantly improved the earnings situation."

Gerstenmayer sees positive trends for the future: "Even if we expect market volatility to continue for the time being, the major trends in terms of digitalization and electrification remain intact and offer clear growth opportunities for AT&S."

EBITDA fell 31% to €217 million from €315 million, primarily due to lower sales. AT&S initiated comprehensive cost-optimization and efficiency programs in the previous financial year. These programs, the company said, made a higher contribution in the first half than originally planned. EBITDA at both segments significantly improved: Electronics Solutions increased 119% sequentially to €89 million in Q2, on higher sales and a better product mix. Microelectronics' EBITDA increased 43% to €50 million compared to Q1, for similar reasons.

Exchange rate fluctuations had a positive impact on earnings of €15 million. Adjusted for startup costs in Kulim, Malaysia, and Leoben, EBITDA amounted to €249 million, down 26% from the previous year.

EBITDA margin was 26.6% (startup cost-adjusted EBITDA margin: 30.6%), below the previous year's level of 29.5% (startup cost-adjusted EBITDA margin: 31.3%). The margin was supported by the cost-optimization and efficiency programs as well as by positive developments in the Medical segment – a division for which AT&S is currently examining strategic options. Depreciation and amortization increased by €900,000 year-on-year to €135 million (16.6% of sales) due to asset acquisitions and technology upgrades. EBIT fell from €181 million to €82 million. The financial result fell from €66 million in the previous year to the current level of €-18 million, mainly due to a change in foreign currency effects on cash and cash equivalents.

The net assets and financial position as of September 30 continue to be shaped by investment and related financing activities. Total assets increased by 4% to €4,317 million compared to the balance sheet date of March 31, 2023 due to additions to investments. Despite the positive net income, the equity ratio decreased by 2.1 percentage points to 25.7% due to the high investment volume and negative exchange rate effects in other comprehensive income (OCI).

Cash and cash equivalents decreased to €712 million (March 31, 2023: €792 million). In addition, AT&S has €623 million in unused credit lines to secure the financing of the future investment program and short-term repayments.