AT&S's H1 Profits Fall on Drop in Handheld Demand
LEOBEN, AUSTRIA -- AT&S today reported fiscal first-half revenues rose 5.3% on strong demand from industrial and automotive customers.
For the six months ended Sept. 30, the printed circuit board fabricator's sales totaled 254,771 euros. Net income plunged, however, falling 85% to 2.1 million euros, on lower production at its mobile phone PCB unit in Shanghai. The operating profit margin was 3.36%.
"By the end of the first quarter changes in models, delayed product launches and the sales problems experienced by individual Mobile Devices customers resulted
in capacity underutilization in our Shanghai plant. Contrary to expectations this insufficient capacity utilisation continued into August, resulting in consolidated first half net profit that fell significantly short of internal expectations," the company said.
Orders have picked up since mid-August and capacity utilization in Shanghai is back to normal levels, the firm added.
AT&S had first-quarter sales of about 126 million euros ($153 million) and net income of 520,000 euros.
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