EANS-News: FACC AG Solid performance in the first quarter of 2014/15
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quarterly report/First quarter 2014/15
· First-quarter sales revenue up 6.2 percent year-on-year to EUR 119.7
million (EUR 112.8 million)
· Earnings according to planning below previous year's figures due to
ramp-up of new projects in Q1
· Successful completion of IPO is a company milestone securing long-term
profitable growth
· FACC confirms guidance for 2014/15
Ried - FACC AG has made a good start to the fiscal year 2014/15 showing a solid
performance: In the first quarter of the fiscal year 2014/15, the FACC Group
generated revenue of EUR 119.7 million. This means an increase of EUR 7.0
million or 6.2% compared to the year-on-year amount of EUR 112.8 million.
,,FACC has established a strong position under the tier-1 aerospace suppliers in
recent years. Our solid performance in the first quarter is an additional proof
of this," said Walter Stephan, CEO of FACC AG. ,,We must now continue improving
our position and maintain our successful course as part of the systematic
implementation of our strategy 'Vision 2020'. We thereby focus on three key
action areas: firstly, disciplined cost and investment management, secondly, our
profitability targets and thirdly, improved profitability in all divisions."
Revenue growth was driven by increased product revenue of EUR 15.3 million or
13.5%, while revenue related to development services dropped by EUR 8.3 million
or 7.4% at the same time. Product revenue picked up largely with respect to the
Airbus A321, Airbus A350 XWB, Boeing 787 and Boeing 737 programs as well as
additional product deliveries for aircraft interiors. The slowdown in revenue
from development services is largely due to the fact that in the comparative
period of the first quarter of 2013/14 the FACC Group invoiced a significant
amount for development services with respect to a development project in the
Aerostructures segment. In the first quarter of the fiscal year 2014/15, the
FACC Group did not invoice a similarly significant amount. Over the course of
the current fiscal year, the FACC Group currently expects to invoice for
development services in line with the internal planning.
For at the first quarter of the fiscal year 2014/15, earnings before interest,
taxes and fair value measurement of derivative financial instruments (EBIT)
amounted to EUR -5.3 million (Q1 2013/14: EUR 1.2 million), which means a change
of EUR -6.4 million. The change in the earnings position is also materially
attributable to the higher amount invoiced for development services in Q1 2013/
14. In the first quarter of the current fiscal year 2014/15 the FACC Group had
not planned to invoice a similar amount and as a result earnings are down
relative to the previous year. In addition, the FACC Group also started up a
number of new projects in the Interiors segment. This also impacted the results
of the first quarter of the fiscal year 2014/15. Given the extensive learning
curve factors, new projects affect production costs in the early phases. The
FACC Group currently expects to submit further invoices for development services
in line with the internal planning. After the first quarter, however, the
production costs of these programs are developing as planned. The weakening of
the EUR/USD exchange rate during the past 12 months resulted in a weakening of
the hedged EUR/USD exchange rate. Although expected, this also had a negative
impact on the earnings position.
In the first quarter of 2014/15, investments were made in accordance with the
investment budget and amounted to EUR 11.4 million (Q1 2013/14: EUR 11.2
million). Capitalized development costs contained in investments amounted to EUR
6.0 million (Q1 2013/14: EUR 3.2 million), mostly driven by engineering services
associated with the development of the Airbus A350-1000 exerting the greatest
influence. The expansion of production capacity in the Interiors segment has
mostly been completed and is being put into operation as planned. Measures aimed
at raising efficiency - particularly with respect to a reduction in production
costs, such as learning curve effects, the promotion of synchronized production,
and a reduction in the cost of quality and material costs - are being
implemented.
As at 31 May 2014, staff numbers amounted to 3,055 employees, compared to 2,458
employees per 31 May 2013. At the Austrian sites, staff numbers increased from
2,590 to 2,681 employees (+91 employees or 3.51%) between 1 March 2014 and 31
May 2014, with the majority (77 employees) being added in production. The FACC
Group estimates that staff numbers will remain unchanged in the development and
administrative areas over the coming quarters.
Outlook
The commercial aerospace business environment continued to develop positively in
the first quarter of 2014/15. From a current perspective, and on the basis of
the orders currently booked for the remaining quarters of the fiscal year, the
FACC Group assumes that the positive trend of the first quarter will continue.
The Group expects revenues to increase in the high single-digit percentage range
in fiscal year 2014/15 compared to the fiscal year 2013/14. The operating profit
should be slightly above the same level as in the previous year. The planning is
subject to long term delivery contracts with customers. Therefore the FACC Group
is less focused on the performance achieved during a particular quarterly
reporting period. The projections are based on current estimates as well as the
latest customer forecasts. However, changes in estimates and customer forecasts
may still occur.
The current trend of airlines striving to operate their business more
efficiently is driving the demand from airlines for new and thus more efficient
aircraft. In light of the economic pressure for the use of efficient aircraft,
FACC assumes from a current perspective that the global growth targets for
commercial airplanes will be achieved and that the demand for new aircraft will
remain strong. This development is further supported by a rise in passenger
numbers of more than 4% worldwide, largely in the Asia/Pacific region, the
Middle East and Africa. The Farnborough Airshow, that closed its doors on
Sunday, has confirmed this trend: The major Western aircraft manufacturers
received firm orders for 919 aircraft.
Ramp-ups of newly developed programs, rising production rates and a growing
share on existing aircraft types will all help the FACC Group achieve its growth
targets. The order backlog of the FACC Group continues to show positive
developments. It is also worth mentioning that at the time this quarterly report
was being written the FACC Group successfully concluded new orders in regard to
the Airbus A320 family. This means that the FACC Group is further strengthening
its leading role as a winglet supplier and preferred partner in the commercial
aerospace industry. The order backlog of these new contracts is $ 450 million.
The most significant event in the first quarter was the IPO, which got off to a
flying start on 25 June 2014 at the time when this quarterly report was being
prepared. In doing so, the FACC Group managed to considerably strengthen its
equity basis and expand its shareholder base. This further supports the Group's
"FACC Vision 2020" strategy when it comes to strengthening and expanding its
position as a tier-1 supplier of customers such as Airbus, Boeing, Bombardier,
Embraer and all renowned engine manufacturers. ,,The IPO is a major milestone in
the history of FACC that will contribute towards achieving our growth
ambitions," said Walter Stephan. ,,In the fiscal year 2014/15 alone, we are
planning to make substantial investments in expanding capacities, raising the
degree of automation and developing new programs. Furthermore, this capital
increase will allow us to make targeted acquisitions and participate actively in
the consolidation of the global commercial aerospace industry."
FACC AG - First Quarter (Q1) Results in FY 2014/15
______________________________________________________________________________
|Amounts in millions of | Q1 2014/15 | Q1 2013/14 |
|Euro_____________________|_________________________|__________________________|
|Overall_Revenue__________|____________________119.7|_____________________112.8|
|Revenue_per_division_____|_________________________|__________________________|
|Aerostructures___________|_____________________60.7|______________________59.0|
|Engines_&_Nacelles_______|_____________________20.2|______________________19.2|
|Interiors________________|_____________________38.9|______________________34.5|
|Earnings before interest,| | |
|taxes and fair value | | |
|measurement of derivative| -5.3| 1.2|
|financial instruments | | |
|(EBIT)___________________|_________________________|__________________________|
|Net profit after taxes | | |
|adjusted for the change | | |
|in the fair values of | -5.6| -1.2|
|derivative financial | | |
|instruments______________|_________________________|__________________________|
|Total employees (end of | 3,055| 2,458|
|period)__________________|_________________________|__________________________|
|Research and development | | |
|costs | | |
|Capitalized development | 6.0| 3.2|
|costs | 4.3| 9.5|
|Research and development | 8.6 %| 11.3 %|
|costs expensed | | |
|As_percentage_of_revenue_|_________________________|__________________________|
About FACC
FACC AG is one of the world's leading companies in the design, development and
production of advanced fiber reinforced composite components and systems for the
aviation industry. Their range of products reaches from structural components
for the fuselage and wings to engine components to complete passenger cabins for
commercial aircraft, business jets and helicopters. FACC is a supplier to all
large aircraft manufacturers such as Airbus, Boeing, Bombardier, Embraer,
Sukhoi, and COMAC as well as for engine manufacturers and sub-suppliers of
manufacturers. In the business year of 2013/14, the FACC Group achieved a
turnover of 547.4
million Euros. The company currently employs 3,000 employees. Further
information can be found under www.facc.com.
Cautionary Statements
Some of the information in this press release may contain projections or other
forward-looking statements regarding future events or the future financial
performance of the Company. You can identify forward looking statements by terms
such as "expect," "believe," "anticipate," "estimate," "intend," "will,"
"could," "may" or "might," or, in each case, the negative of such terms or other
similar expressions. We wish to caution you that these statements are only
predictions and that actual events or results may differ materially. We do not
intend to update these statements to reflect events and circumstances occurring
after the date hereof or to reflect the occurrence of unanticipated events. Many
factors could cause the actual results to differ materially from those contained
in our projections or forward-looking statements, including, among others,
general economic conditions, our competitive environment, risks associated with
our industry, as well as many other risks specifically related to the Company
and its operations.
Further inquiry note:
Presse:
Andrea Schachinger
Corporate Communication
Tel: 059/616-1194
E-Mail: a.schachinger@facc.com
Investor Relations:
Andreas Schoberleitner
Vice President Finance & IR
Tel: 059/616-1322
E-Mail: a.schoberleitner@facc.com
end of announcement euro adhoc
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company: FACC AG
Fischerstraße 9
A-4910 Ried im Innkreis
phone: +43/59/616-0
FAX: +43/59/616-81000
mail: office@facc.com
WWW: www.facc.com
sector: Industrial Components
ISIN: AT00000FACC2
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language: English
