Ad-hoc | 28 July 2004 07:31

AT&S AG: Result for the first quarter of 2004/05 to 30 June 2004

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– AT&S increases sales by 6%, EBIT by 60% and profit by more than 400%. AT&S AG, Vienna, Austria, 28 July 2004 In the first quarter of the 2004/05 financial year AT&S achieved sales of EUR 77.9m, around 6% up on the previous year. The EBIT was increased by 60% to EUR 6.4m compared to the first quarter of the last financial year. In the first quarter the EBIT margin therefore reached 8.2%. As a result of the current expansion of production capacities in the laser field for 2N2 technology the yield of AT&S should continue to rise and the margin situation should therefore also improve. The quarterly result before tax amounted to EUR 7.3m (+67%). The net income of Q1 2003/04 amounted to EUR 7.6m, which represents an increase of over 400%. The reason for this extraordinary rise in profit is not only a very good first quarter from the point of view of operations, but also one-time effects, such as the release of provisions for deferred taxes required as a result of the reduction in corporation tax from 34% to 25%. A strong financial result also was key to net income increase. In the first quarter of 2004/05 the earnings per share (EPS) were EUR 0.29 (EUR 0.05 in the first quarter of 2003/04). At the end of the first quarter the net indebtedness of AT&S was EUR 33.4m (EUR 57.9m one year ago). The gearing therefore reaches 15.9% with the qualifying date of 30 June 2004 (29.9% one year ago). This very satisfying first quarter of 2004/05 also gives us hope that the year as a whole will be very positive. The management therefore confirms its expectations of a growth in sales of at least 10% for the 2004/05 financial year and a significantly higher profit than in the past financial year. end of ad-hoc-announcement (c)DGAP 28.07.2004 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Results according to US-GAAP (in millions of Euros, earnings/share in EUR): Q1 04/05 Margin Q1 03/04 Margin Total income 77.9 73.7 Gross profit 11.6 14.9 % 9.2 12.5 % EBITDA 16.8 21.6 % 14.1 19.1 % EBIT 6.4 8.2 % 4.0 5.4 % Net income 7.6 1.3 Earnings/share 0.29 0.05 Net debt 33.4 57.9 Net gearing 15.9 % 29.9 % Explanations of the result for the first quarter of 2004/05 Shifts in market shares in the mobile telephone sector without negative effects for AT&S As hoped for, the market share losses suffered by Nokia in the first quarter had no negative effects on the order position or orders placed with AT&S. The Nokia business remained stable, and with new customers such as Sony-Ericsson or even Motorola, business relationships could be extended. Because of the continued conversion of the mobile telephone to 2N2 HDI circuit boards AT&S is able to make full use of its well-known qualities in the mass production of new technologies and will gain advantages in terms of its market position from this development. From autumn onwards around a third of the HDI circuit boards produced by AT&S will have 2N2 technology. In the first quarter 62% of AT&S’ turnover fell to customers in the telecommunications field. Important qualification stages in the automotive sector; industrial business shows stability The expansion of the customer base in the industrial and medical fields achieved over the last financial year has continued into the current financial year. In the last quarter around 25% of turnover fell to this group of customers. In the automotive market, where around 13% of turnover volume was achieved for the quarter, AT&S had three major successes: the factory in Nanjangud, India, qualified as a supplier for Siemens VDO, AT&S was selected as development partner for an important European centre of Delphi, and finally the first thick copper order was won in Klagenfurt. The growth rate of AT&S was therefore consolidated in all areas of business. The technological upgrading of the plants, the capacity expansion in China and the specialisation of the European centres are moving apace, creating good conditions for medium- and long-term growth. These conditions include not only the conscientious preparation for new investments, but also the development of management capacities for planning and implementation of international projects. Good operative quarter with additional positive one-off effects With sales of EUR 77.9m AT&S recorded the best first quarter in its history. This turnover not only represents an increase of around 6 per cent in terms of an annual comparison, but an almost unchanged situation compared to the fourth quarter of the last financial year. The gross profit increased to EUR 11.6m, equivalent to a gross profit margin of 14.9%. This is far better than in the first quarter of 2003/04, but lower than the 18.7% AT&S achieved in the fourth quarter of 2003/04. As the 2N2 technology comes on stream in the next few months, resulting in better capacity utilisation in all the production processes, the margin situation should also improve. The net income (EUR 7.6m) must be considered separately as it includes one-time effects that are a consequence of the reform of corporation tax in Austria. In concrete terms provisions for deferred income taxes valued until now at 34% (old tax rate) amounting to EUR 1.5m have had to be released. A positive contribution to the net income on a quarterly basis will therefore result from the group tax. As a consequence, the management is expecting a group tax rate of 15% for the year as a whole. The presentation of results and the quarterly financial statement in Excel (excl. notes) for the first quarter of 2004/05 can be found from 08:00 hrs. (CET) today on http://www.ats.net (Investors). The quarterly report will be available as a pdf document from the end of July 2004. You may obtain further information from René Berger, IRO, Tel. +43-1-68300-9215, E-Mail: r.berger@ats.net . ——————————————————————————– WKN: 922230; ISIN: AT0000969985; Index: TecDAX, NEMAX 50 Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 280731 Jul 04