AT&S hits targets and posts record sales

AT&S hits targets and posts record sales - dividend to be increased AT&S annual results for 2005/06 show a 13% increase in sales, and EBIT growth of 24%

AT&S has posted its results for financial 2005/06, with sales of EUR 375m and EBIT of over EUR 26m; ramp-up of its second Shanghai facility is to follow in August.

AT&S, Europe and India's largest producer of printed circuit boards and one of the world's most successful suppliers to the mobile phone industry, posted sales of EUR 375m in 2005/06, a 13% increase. Operating profit (EBIT) for the year was up 24%, to about EUR 26m.

Net income for the year was EUR 28.3m, resulting in earnings per share of EUR 1.09. In 2005/06 AT&S's sales of printed circuit boards for mobile phones exceeded the 100 million mark for the first time in its history.  This accounted for approximately 65% of total revenues.

In the 2006/07 financial year beginning in April, Management forecasts further revenue growth of somewhat more than 20%, to take sales to EUR 455m. This increase will be driven by the start of production in the second Shanghai plant, continuation of the boom in the mobile telephone market and growth of the Korean subsidiary, Tofic.

"We were unable to take on all the orders last year, as we hit our capacity limits. Start of production at the second Shanghai facility will eliminate this bottleneck. From today's perspective the second site will be running at full capacity from day one," says CEO of AT&S's Harald Sommerer of the coming months.

"The targeted revenue growth over the coming two years will by 2007/08 see us among the top ten in the printed circuit board industry worldwide - a market worth over USD 40bn annually."

AT&S will increase dividends in response to its good business performance and the excellent outlook for 2006/07. "As always, we have based the size of the dividend on the cash earnings," explains CFO Steen Hansen. "For 2005/06 we shall recommend a dividend of EUR 0,29 per share to the Annual General Meeting. This amounts to an increase of just under 10% and is the highest dividend in AT&S's history."

As announced in mid-April, AT&S will resume its share repurchase program with effect from May 15, 2006. "The share repurchase program and subsequent cancellation of shares will help to optimize the structure of the balance sheet and at the same time give shareholders a greater participation in Group's success, similarly to a special dividend. We can finance growth from the cash flow and through external borrowings without any difficulty."