VIENNA – AT&S, Europe's largest PWB maker, reported first-quarter revenues rose 0.4% year-over-year, while margins fell.

The company reported sales of 115.2 million euros ($184 million) on seasonal weakness and less profitable product mix. Operating profit fell 27.5% to 5.6 million euros, while net income dropped 45% to 5 million euros.
“That was really not a good quarter. In addition to the inherent seasonality of our business, the macroeconomic uncertainties also had a depressing effect on our performance,” said Harald Sommerer, chairman.

The weakness of the US dollar and high wage settlements in Austria represent significant competitive drawbacks for volume production, which is why the concentration on European markets is being intensified in the Leoben-Hinterberg plants in particular, the company said. “Around three quarters of all sales are linked to the dollar, which has fallen against the euro by about 16% in comparison with the same period last year. Which means that if the euro/dollar exchange rate had held steady, sales would actually have been up by three quarters of 16%; i.e., roughly 12%,” said chief financial officer Steen Hansen.

“Production over and above the clearly defined baseload is focused on greater flexibility and speed, and on smaller batch sizes. This is the best possible way to meet the requirements of our industrial and automotive customers in Europe, so as to win further market share,” Sommerer added.

AT&S said its fiscal second quarter would show higher capacity utilization and a better product mix, but declined specific guidance.

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