DGAP-Adhoc: AT&S Austria Technologie & Systemtechnik AG: AT&S adapts capacities at Leoben-Hinterberg facility. Impairment writedown at AT&S Korea.
18.11.2008
AT&S Austria Technologie & Systemtechnik AG / Miscellaneous
18.11.2008
Release of an Ad hoc announcement, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
=--------------------------------------------------------------------------
Capacities to be adapted at Leoben-Hinterberg
The effects of recent developments in the world's financial markets on the
real economy are increasingly now also being felt in the electronics
industry. In addition to the to-be-expected reductions in volumes, prices
are also coming under increased pressure, so that volume orders will only
be able to be produced in Austria in future under exceptional
circumstances. The past years have already seen a general tendency for
volume production to migrate to Asia, but the trend is being given an
additional boost by the ever more noticeable economic crisis.
These developments, which have been confirmed in many discussions with
customers over recent weeks, make it necessary to make adjustments to
capacity at the Leoben-Hinterberg facility. The purpose of adapting
operations at Leoben-Hinterberg is to do everything possible to strengthen
the facility's role as a technology driver in the industry and as the AT&S
Group's specialist for prototyping and rapid turnaround business. Roughly
EUR 3 million is being invested in this realignment of operations.
Capacity adjustment will affect 293 of AT&S's own staff, and 159 leased
personnel at the site, so that overall numbers will be reduced from 1,370
to 918 people employed.
Production capacity will be reduced from the current level of 215,000 m2
printed circuit board area to 130,000 m2. Some of the machines no longer
required for production in Leoben-Hinterberg will be put to use in the new
factory in India, reducing the amount needing to be invested there by EUR
7.4 million.
The total costs of restructuring will amount to some EUR 20.4 million, made
up of redundancy costs, building writedowns and other costs of
reorganisation. The precise costs will not be known until the social plan
for redundant staff has been agreed. AT&S expects to announce the first
redundancies by the end of 2008, so that the staff reduction can largely be
completed by the end of the 2008/09 financial year.
Impairment writedown at AT&S Korea
Despite the facility's first positive EBIT result in October, and even
though the future development of AT&S Korea is seen in a generally positive
light, that company's business plan requires to be adapted to reflect the
current overall economic climate. On this more conservative basis, the
impairment test carried out has identified the need for a writedown of
approximately EUR 6.8 million: the goodwill of around EUR 5.3 million is
being completely written off, and tax provisions are being reduced by some
EUR 1.5 million.
AT&S Austria Technologie und Systemtechnik AG
Hans Lang, IRO Tel. +43 (1) 68300 9259, e-mail: h.lang@ats.net, www.ats.net
18.11.2008 Financial News transmitted by DGAP
=--------------------------------------------------------------------------
Language: English
Issuer: AT&S Austria Technologie & Systemtechnik AG
Fabriksgasse 13
8700 Leoben
Österreich
Phone: +43 (1) 3842200-0
Fax: +43 (1) 3842200-216
E-mail: info@ats.net
Internet: www.ats.net
ISIN: AT0000969985
WKN: 922230
Listed: Freiverkehr in Berlin, Hannover, Düsseldorf, Hamburg,
München, Stuttgart; Open Market in Frankfurt; Foreign
Exchange(s) Wien
End of News DGAP News-Service
=--------------------------------------------------------------------------
AT&S Austria Technologie & Systemtechnik AG / Miscellaneous
18.11.2008
Release of an Ad hoc announcement, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
=--------------------------------------------------------------------------
Capacities to be adapted at Leoben-Hinterberg
The effects of recent developments in the world's financial markets on the
real economy are increasingly now also being felt in the electronics
industry. In addition to the to-be-expected reductions in volumes, prices
are also coming under increased pressure, so that volume orders will only
be able to be produced in Austria in future under exceptional
circumstances. The past years have already seen a general tendency for
volume production to migrate to Asia, but the trend is being given an
additional boost by the ever more noticeable economic crisis.
These developments, which have been confirmed in many discussions with
customers over recent weeks, make it necessary to make adjustments to
capacity at the Leoben-Hinterberg facility. The purpose of adapting
operations at Leoben-Hinterberg is to do everything possible to strengthen
the facility's role as a technology driver in the industry and as the AT&S
Group's specialist for prototyping and rapid turnaround business. Roughly
EUR 3 million is being invested in this realignment of operations.
Capacity adjustment will affect 293 of AT&S's own staff, and 159 leased
personnel at the site, so that overall numbers will be reduced from 1,370
to 918 people employed.
Production capacity will be reduced from the current level of 215,000 m2
printed circuit board area to 130,000 m2. Some of the machines no longer
required for production in Leoben-Hinterberg will be put to use in the new
factory in India, reducing the amount needing to be invested there by EUR
7.4 million.
The total costs of restructuring will amount to some EUR 20.4 million, made
up of redundancy costs, building writedowns and other costs of
reorganisation. The precise costs will not be known until the social plan
for redundant staff has been agreed. AT&S expects to announce the first
redundancies by the end of 2008, so that the staff reduction can largely be
completed by the end of the 2008/09 financial year.
Impairment writedown at AT&S Korea
Despite the facility's first positive EBIT result in October, and even
though the future development of AT&S Korea is seen in a generally positive
light, that company's business plan requires to be adapted to reflect the
current overall economic climate. On this more conservative basis, the
impairment test carried out has identified the need for a writedown of
approximately EUR 6.8 million: the goodwill of around EUR 5.3 million is
being completely written off, and tax provisions are being reduced by some
EUR 1.5 million.
AT&S Austria Technologie und Systemtechnik AG
Hans Lang, IRO Tel. +43 (1) 68300 9259, e-mail: h.lang@ats.net, www.ats.net
18.11.2008 Financial News transmitted by DGAP
=--------------------------------------------------------------------------
Language: English
Issuer: AT&S Austria Technologie & Systemtechnik AG
Fabriksgasse 13
8700 Leoben
Österreich
Phone: +43 (1) 3842200-0
Fax: +43 (1) 3842200-216
E-mail: info@ats.net
Internet: www.ats.net
ISIN: AT0000969985
WKN: 922230
Listed: Freiverkehr in Berlin, Hannover, Düsseldorf, Hamburg,
München, Stuttgart; Open Market in Frankfurt; Foreign
Exchange(s) Wien
End of News DGAP News-Service
=--------------------------------------------------------------------------
Copyright (c) 2007 Dow Jones & Company, Inc.