Industry in crisis

Andritz and AT&S in the red for the first half of the year

The major Styrian companies Andritz (left) and AT&S have had a difficult few months.

(Bild: Krone KREATIV/Christian Jauschowetz, APA/Peter Kolb)

The bad news from the domestic industry continues unabated. On Thursday, the Styrian machine and plant manufacturer Andritz reported lower sales and profits in the third quarter. The printed circuit board manufacturer AT&S also posted heavy losses.

Andritz's turnover in the third quarter fell by three percent year-on-year to 2.04 billion euros. The operating result fell by 1.3 percent to 174.1 million euros, while the consolidated result fell by five percent to 118.4 million euros, the company announced. Over three quarters, turnover also fell by three percent to 6.21 billion euros.

Silver lining in the third quarter, but "persistently difficult environment"
Incoming orders in the first three quarters amounted to 5.75 billion euros and were therefore 11.8 percent lower than in the same period last year. A ray of hope: In the third quarter, 5.5 percent more orders were landed than in the previous year. "In view of the persistently difficult economic environment, we are satisfied with the order intake in the third quarter and are pleased that we were able to maintain our profitability at the previous year's level despite the decline in sales," says CEO Joachim Schönbeck.

Andritz boss Joachim Schönbeck

(Bild: Zwefo)

He does not expect the markets to recover quickly - which is why Andritz has revised its outlook for the current financial year slightly downwards and now expects a slight decline in sales instead of stable sales and profitability.

AT&S: Automotive and industrial customers are weakening
AT&S posted a loss of 63 million euros in the first half of the year. In the same period of the previous year, a profit of 49 million was achieved. Turnover fell by two percent to 800 million euros in the first six months of the current financial year, the Leoben-based company announced on Thursday.

However, volumes increased significantly, says CEO Peter Schneider. In the second quarter, AT&S was able to increase turnover by 29 percent to 451 million euros compared to the previous quarter, thus reaching the previous year's level. Nevertheless, the company is facing massive price pressure for printed circuit boards and especially for IC substrates (the connections between microchip and board) as well as weakness among customers in the European automotive and industrial markets.

AT&S Management Board Spokesman Peter Schneider

(Bild: Kanizaj Marija)

This is also reflected in the operating result, which fell by 27 percent to 217 million euros in the first half of the year. In the second quarter, a minus of 35 percent was even recorded.

No rapid improvement
A rapid improvement in the market environment is not in sight, and the price pressure and fluctuating ordering behavior of a key customer will not change for the time being. In addition, high-volume production at the two new plants will be delayed by one to two quarters, meaning that they will not contribute to sales in the current financial year.

Expansion in Leoben and Malaysia
The forecast for the current financial year has therefore been adjusted: Turnover of 1.5 to 1.6 billion euros is now expected, instead of 1.6 to 1.7 billion. With the expansion of production capacities in Kulim, Malaysia, and at the Leoben site, sales are expected to increase to around three billion euros in the 2026/27 financial year, the company announced.