Competition and production dynamics reported at AT&S, leading circuit board manufacturers
Austrian Tech Giant AT&S: Navigating the Storm amid Challenges
AT&S, a trailblazing Austrian company in the high-tech circuit board industry, is treading through choppy waters, but its CEO Petra Preining maintains an optimistic outlook. With a revenue of 1.59 billion euros, the company is finding its footing despite persistent market uncertainties.
Sales Up, But Challenges Remain
AT&S reported a 3% revenue increase, but the journey hasn’t been easy. The company is grappling with intensifying price pressure, overcapacities, and trade policy uncertainties caused by the volatile policies of U.S. President Donald Trump.
EBITDA and Operational Cash Flow
The company's EBITDA skyrocketed by 97%, standing at 606 million euros, thanks largely to the sale of the Korean Ansan plant. The EBITDA, adjusted for Malaysia's Kulim plant startup costs and Leoben research center R&D expenses, amounted to 408 million euros, indicating a 6% increase.
New Leadership
Michael Mertin, the former Jenoptik CEO, took the helm at AT&S in early May. Despite a low-key debut at the results presentation, Mertin's leadership is anticipated to be pivotal in navigating the company's future course.
Cost-cutting Measures and Planned Expenditure
AT&S is determined to save 130 million euros this year to brace against market price pressures. The company aims to achieve this by continuing its ongoing cost-cutting program, which saved 120 million euros last year.
Focus on Malaysia
To boost growth, AT&S is investing heavily in Malaysia, with the Kulim plant set to start mass production of substrates and achieve revenue generation in the second quarter. The company's Leoben research center will open in June.
Future Outlook
Due to ongoing uncertainties regarding US tariffs, AT&S is yet to release a full-year outlook. However, the company expects a significant increase in revenue in the second quarter owing to Malaysia's Kulim plant's production launches. There is no immediate expectation of a European automotive or industrial sector recovery.
Innovation and Expansion
AT&S is pushing ahead with its strategic growth, innovation, and expansion plans. Focus areas include miniaturization technology for faster data connections, the production of complex, reliable PCB solutions for the aerospace industry, and the expansion of operations through Malaysia's Kulim campus. The ultimate goal is to become one of the top three global IC substrate suppliers.
Like any other company, AT&S faces challenges, but the company's resilience, innovative spirit, and strategic planning are chief factors that make it an industry leader. With new leadership, strategic asset management, and customer diversification, the company is well-positioned to weather the storm and thrive in the competitive tech landscape.
Innovative Approach to FinanceIn the face of market uncertainties, AT&S is strategically using its increased revenue to fund its growth and expansion, with a focus on miniaturization technology and aerospace PCB solutions.
Tech-Driven Business ExpansionLeveraging technology, AT&S is not only diversifying its customer base but also expanding its operations through Malaysia's Kulim campus, aiming to become one of the top three global IC substrate suppliers.
