AT & S: Stable sales despite challenges in the semiconductor market

AT & S: Stable sales despite challenges in the semiconductor market

The AT&S Austria Technology & Systemtechnik AG has reported that its sales in the second quarter of the 2024/25 financial year remains at the level of the previous year. With 451 million euros, an increase of 29 % compared to the first quarter (349 million euros) and an almost constant value for the previous year's quarter (452 million euros).

However, market conditions are still challenging. The spokesman for the board, Peter Schneider, emphasized that despite increasing sales volumes, the proceeds suffer from massive price pressure. In particular, the weakness in the areas of automotive and industry has also burdened the situation. CFO Petra Preining added that the efficiency programs generally show positive results, but the difficult conditions broadcast a realistic sales forecast for the current financial year that will remain close to the previous year.

Financial key figures at a glance

In the first half of 2024/25, the group sales with 800 million euros remained almost constant compared to the previous year's period (814 million euros). However, the EBITDA significantly fell by 27 % to 157 million euros (620 million euros in the previous year). This is essentially due to the ongoing price pressure and the increased initial costs for new production sites in Kulim, Malaysia and Leoben, Austria.

The EBITDA margin fell to 19.6 %, while the adjusted EBITDA margin was 27.9 %. This development shows that the financial difficulties, combined with high investments and an increased interest rate, have a significant impact on the economic stability of the company.

The financial result has also deteriorated with a decline to -50 million euros compared to -18 million euros in the previous year. The significant increase in financial liabilities contributes to the burden of the company.

The operational cash flow result of the first half of the year was -91 million euros and was therefore a decrease of 127 % compared to the previous year, which increases concern about the liquidity of the company.

forecast and future -oriented strategies

For the financial year 2024/25, a sales span of 1.5 to 1.6 billion euros is sought, which also represents an adjustment compared to previous estimates. The company plans to invest 500 million euros in the production capacity of its IC substrate locations in Kulim and Leoben. However, due to persistent price pressure as well as the difficulties in the automotive and industrial sector, the company's side does not count on significant sales contributions in the short period.

In the long term, the production capacities can be extended to around 3 billion euros in sales by the 2026/27 financial year. During this time, according to the cautious forecast, an EBITDA margin of 27 to 32 % could be achieved. Nevertheless, the geopolitical situation is observed carefully in order to be able to react quickly to changes.

For detailed information and analyzes of the current market development, www.boerse.de trustworthy source.