January 30, 2019 / 6:00 PM / 10 months ago

UPDATE 1-AT&S profit lifted by diversification, cost savings

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VIENNA, Jan 30 (Reuters) - Austrian maker of printed circuit boards AT&S on Wednesday reported a 16 percent increase in its nine-month core profit helped by a diversified product mix, cost savings and currency effects.

Earnings before interest, depreciation and amortisation (EBITDA) came in at 220.5 million euros ($251.7 million) after 190.3 million last year, the group said. Revenue in the period increased 3 percent to 790.1 million euros.

AT&S generates around two thirds of its revenue with circuit boards for smartphones and tablets and so-called inter circuit (IC) substrates - platforms onto which electronic components are applied. These IC substrates are designed for use in high-end industrial applications, medical devices and navigation systems.

Efficiency measures, the absence of start-up costs incurred in its Chongqing plant in China last year and positive currency effects helped boost its earnings, AT&S said.

Increasing demand for IC substrates and the circuit boards AT&S makes for the healthcare industry partially offset weaker demand from the mobile, automotive and industrial sector in the third quarter, it said.

The group lowered its outlook for its 2018/19 business year earlier this month, blaming weak demand from smartphone makers and the automotive industry and following on the heels of Samsung, Apple and Huawei.

It confirmed it now forecasts revenue to rise by about 3 percent and sees a full-year margin on earnings before interest, depreciation and amortisation (EBITDA) of 24-26 percent. ($1 = 0.8760 euros) (Reporting by Kirsti Knolle; Editing by Elaine Hardcastle and Alexandra Hudson)

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