Release from 15.10.2018

FACC increases sales in 1st half 2018/19 and confirms its outlook for the full year

Technology Leader FACC
  • Sales increase of 4.0 % to EUR 373.0 million 
  • Slight decline in operating result
  • New order worth EUR 230 million
  • Investment offensive in progress as planned
  • More than 130 new employees on board: growth continues
  • Outlook for full year confirmed for all key figures

In the first six months of the 2018/19 business year, FACC AG recorded a planned increase in sales thanks to the continued positive development in the civil aviation industry. A comprehensive investment programme and initiatives to increase the number of employees are currently in progress in order to support the continuous growth in the market. The operating result declined slightly, but the outlook for the full year is positive and an increase in all key figures compared to the previous year is forecast.

“Sales in the first half of the year were in line with our expectations; we are particularly satisfied with the award of a new contract worth EUR 230 million and a further increase in the order backlog to USD 6.5 billion," said Robert Machtlinger, CEO of FACC. “Although the operating result is temporarily declining, we expect a significant improvement for the full year compared to the previous year. The implementation of the new orders worth EUR 750 million signed last year is in line with project planning; the first product revenues from these new projects will be generated from mid-2019."

Sales in the first half of 2018/19 amounted to EUR 373.0 million and were thus EUR 14.3 million or 4.0% higher than in the previous year (first half of 2017/18: EUR 358.7 million). The increase is due to a 4.0% increase in product revenue to EUR 348.4 million. Unchanged from previous periods, sales drivers remained in the area of product sales. The Boeing 787, Airbus A320 Family, Airbus A330 Airbus A350 XWB and Bombardier Challenger 350 and Embraer Legacy 450/500 programs, as well as revenue from the respective engine families, continue to contribute to FACC's growth.

The Group recorded a slight decline in operating earnings. Earnings before interest and taxes (EBIT) of EUR 25.1 million in the first half of 2018/19 were below the previous year’s figure of EUR 29.7 million. The introduction of new cabin configurations in the interior sector and associated one-off costs had a negative impact on earnings.

In the first half of 2018/19 there was an increase of 131 FTE compared to the same period of the previous year. The number of employees at the end of the second quarter of 2018/19 is 3,434 FTE.

A new major order from Airbus worth more than EUR 230 million successfully expands the partnership with the European aircraft manufacturer on the new A320 Airspace cabin. The order, which covers the delivery of the Entrance Area for the entire A320 aircraft family (A318/A319/A320/A321), will increase the Group's order backlog to USD 6.5 billion. Robert Machtlinger stressed, "Our order books are well filled for the next seven years. In order to cover the capacities for rate increases in the existing aircraft programmes as well as the start of series production of new projects, we are continuously investing in the expansion of our locations and in the acquisition of new machines and technologies. Automation, robotics and industry 4.0 are our core topics."

Outlook
The aviation market is still on the upswing. The aircraft manufacturers Airbus and Boeing are both recording a net increase in order books and are assuming a continuously rising order book. In the opinion of management, FACC will continue to pursue the sales target of EUR 1 billion by the end of the 2020/21 financial year in line with the company’s “Vision 2020” strategy. For subsequent periods, a further increase in the production rate in major programs is assumed. FACC's balanced and modern product and customer portfolio enables the company to benefit from the overall growth of all major aircraft fleets. A special focus of FACC is on the settlement of new orders signed last year in the amount of around EUR 750 million. The first noteworthy sales from these new orders are expected in the first half of the financial year 2019/20.

Based on the Group's current market assessment and the current product mix, FACC expects revenue growth in the single-digit percentage to a range of EUR 760 - 770 million for the financial year 2018/19. The Group continues to adhere to the initiatives to increase profitability. This will lead to a disproportionate improvement in earnings. The operating result is expected to be between EUR 52 and 55 million. 

"We continue to attach great importance to intensify the cooperation with our global customers. Increasing our market share in the respective segments, implementing our innovation offensive in Research & Technology and expanding our new strategic business area After Market Services are among our key areas of focus. We are thus setting the course for further expanding our strong position as a preferred technology partner in the global aerospace industry" said Robert Machtlinger.
 
About FACC

FACC is a worldwide leading aerospace company in design, development and production of aerospace technologies and advanced aircraft lightweight systems. Being the technology partner of all major manufacturers, FACC works together with its customers on developing solutions for the mobility of the future. Every second, there is an aircraft taking off with FACC technology on board. In the fiscal year 2023, FACC achieved 736 million Euro in revenues. More than 3,700 people from +50 nations are employed at 15 international locations worldwide. The company is listed on the Vienna Stock Exchange. For more information please visit facc.com.

 

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Technology Leader FACC
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Contact

3 Andreas Perotti
Andreas Perotti
Director Marketing & Communications
Tel.: +43/59/616-1142
Cell: +43/664/ 80 119 1142
E-Mail: a.perotti@facc.com