FACC shows solid development in the first half of 2019

Editor -
  • Slight increase in sales to EUR 373.4 million
  • EBIT at EUR 16.0 million - earnings development in line with communicated forecast
  • FACC gains market share in major aircraft programs
  • Adjustment of the outlook for the shortened financial year

Sales revenues in the first six months of 2019 stood at EUR 373.4 million (comparable period 2018/19: EUR 367.4 million). This growth of 1.6% is the result of the increase of product sales to EUR 344.7 million in the first six months of 2019. The revenue drivers in the area of product sales remained unchanged compared to previous periods. All major aircraft programs of our main customers Airbus, Boeing, Bombardier and Embraer along with revenues from their respective engine families continue to support the group's growth.

Reported earnings before interest and taxes (EBIT) amounted to EUR 16.0 million in the first six months of 2019 (comparable period 2018/19: EUR 28.5 million). The group's earnings situation continued to be adversely affected by start-up costs of projects recently put into series production in the Cabin Interiors segment. "The series ramp-up effects for important strategic projects we mentioned after the first quarter are developing in line with expectations. The operational measures to reduce costs are progressing and will lead to stable profitability from the second half of 2020," said Rober Machtlinger, CEO of FACC AG. "Based on the market analyses we have conducted, we expect sustained growth in the aviation industry in the long run, but are currently observing a slight flattening of the growth curve. This trend is reflected in our sales development, which shows a smaller increase than planned."

FACC registered incoming orders in the amount of more than USD 800 million in the first half of 2019. These new orders will contribute to the further expansion of the company's customer and product portfolio and sustainably strengthen the group's market position. "We are very pleased that the FACC Group has once again improved its ranking among the top 100 global aerospace companies in succession and enjoys a reputation as an innovation leader in the industry. New orders, not only from long-term customers but also from new customers, provide impressive confirmation of this," said Robert Machtlinger.

Outlook

The 5th Annual General Meeting on 9 July 2019 resolved, among other things, to change the financial year to the calendar year. 2019 is therefore a short financial year ending on 31 December 2019 (1 March 2019 - 31 December 2019).

For the current fiscal year (short financial year), management expects sales of around EUR 600 million and an EBIT margin of approximately 6%. This expectation corresponds to a continuation of customer requirements for the remainder of the financial year. It should be noted here that the development during the year is not linear due to various seasonal effects.

All other statements on the influences on sales and earnings expectations and measures remain unchanged, taking into account the shortened financial year.

FACC AG’s Half Year Report 2019 may be viewed on the Company’s website, www.facc.com, under the link facc.com/en/Investor-Relations/Financial-Reports.