EANS-News: FACC AG continues to drive growth forward in first half of 2014/15
--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------
6-month report
· Revenue rose by 3.4% to new record level of EUR 235.9 million
· Strong increase of product revenue and high degree of capacity
utilisation in all divisions
· Financial results below last year resulting from the simultaneous ramp-
up to serial production of several new projects
· Positive effecton second half earnings expected from higher volumes and
increased efficiencies
· Market demand for new and efficient aircraft remains at a high level
· Management reiterates full year guidance
Ried / FACC AG continued its growth course in the first half of 2014/15 and
recorded stable business performance over the reporting period: In the first
half of the fiscal year 2014/15, the FACC Group generated revenue of EUR 235.9
million. This means an increase of EUR 7.8 million or 3.4% compared to the year-
on-year amount of EUR 228.1 million. Revenue growth was driven by increased
product revenue of EUR 29.3 million or 15.9%, while revenue related to
development services dropped by EUR -21.5 million or -48.9% at the same time.
Product revenue recorded increases in the Aerostructures and Interiors division,
while the Engine & Nacelles division was in line with last year. Product
revenues picked up largely with respect to the Airbus A321, Airbus A350 XWB,
Boeing 787 and Boeing 737 programmes.
For the first half of the fiscal year 2014/15, earnings before interest, taxes
and fair value measurement of derivative financial instruments (EBIT) amounted
to EUR -14.5 million (first half 2013/14 EUR 7.7 million). As in the first
quarter 2014/15, the change in earnings position is also materially attributable
to the higher amount invoiced for development services in the first half of
2013/14. In the first half of 2014/15, it was not planned to invoice a similar
amount and, as a result, earnings are down relative to the first half 2013/14.
Over the course of the current fiscal year, most notably in Q4, FACC is expected
to invoice for development services in line with the internal planning. In
addition, FACC also started up a number of new projects. This also impacted the
results of the first half of the fiscal year 2014/15. Measures aimed at raising
efficiency and reducing the production costs - such as learning curve effects,
the promotion of synchronised production, and a reduction in quality and
material costs - are being implemented.
"From an operational perspective, the first half year posed a number of
challenges as result of the combination of ramping up serial production for new
products and the commensurate increase in production capacity and employees,"
said Walter A. Stephan, CEO of FACC AG. "To support our goals, we have given
highest priority to the continued implementation of various optimisation
programmes across the company. Against this background, we believe that we are
in an excellent position to meet the operational and financial goals for the
current fiscal year."
In the first half of 2014/15, investments were made in accordance with the
investment budget and amounted to EUR 35.1 million (first half of 2013/14 EUR
24.7 million). Capitalised development costs contained in investments amounted
to EUR 12.3 million (first half of 2013/14 EUR 7.1 million), mostly driven by
engineering services associated with the development of the Airbus A350, Embraer
Legacy 450/500 and Embraer E-Jet 190. The expansion of production capacity in
the Interiors division was completed and put into operation.
As at the interim reporting date 31 August 2014, the FACC Group employed a total
of 3,169 staff. In comparison to the previous year's reporting date, staff
numbers increased by 628.
Outlook
The global commercial aerospace industry continued to show sustained steady
growth. Demand from airlines for modern and weight-optimised aircraft with
increased efficiency remains at a high level. From a current perspective, and on
the basis of the orders currently booked for the remaining two quarters of the
fiscal year, FACC expects a single digit revenue increase in fiscal year 2014/
15, with revenues from product deliveries projected to grow at a double-digit
rate in the fiscal year 2014/15.
The order backlog of the FACC Group continues to show positive developments. New
orders for major aircraft programs such as A320 family and Boeing 787-10,
received during the reporting period, strengthen the company's role as a
technology leader and preferred supplier partner in the commercial aerospace
industry. "The high order backlog and our long-standing customer partnerships
further support our strategy 'FACC Vision 2020' when it comes to strengthening
and expanding our position as a Tier 1 supplier of customers such as Airbus,
Boeing, Bombardier, Embraer and all major engine manufacturers."
The interim report for the first half year 2014/15 is available for download
atwww.facc.com.
About FACC
FACC AG is one of the world's leading companies in the design, development and
production of advanced fibre 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, FACC achieved a turnover of 547.4 million
Euros. The companycurrently employs more than 3,100 employees.Further
information can be found under www.facc.com.
FACC AG - First Half Year Results in FY 2014/15
______________________________________________________________________________
|Amounts in millions of | HY1 2014/15 | HY1 2013/14 |
|Euro_____________________|________3-8/2014_________|_________3-8/2013_________|
|Overall_Revenue__________|____________________235.9|_____________________228.1|
|Revenue_per_division_____|_________________________|__________________________|
|Aerostructures___________|_____________________12.3|_____________________120.8|
|Engines_&_Nacelles_______|_____________________40.1|______________________40.6|
|Interiors________________|_____________________71.5|______________________66.7|
|Earnings before interest,| | |
|taxes and fair value | | |
|measurement of derivative| -14.5| 7.7|
|financial instruments | | |
|(EBIT)___________________|_________________________|__________________________|
|Net profit after taxes | | |
|adjusted for the change | | |
|in the fair values of | -14.0| 2.7|
|derivative financial | | |
|instruments______________|_________________________|__________________________|
|Total employees (end of | 3,169| 2,541|
|period)__________________|_________________________|__________________________|
|Research and development | | |
|costs | 12.3| 7.1|
|Capitalized development | | |
|costs | 14.6| 23.4|
|Research and development | 11.4 %| 13.4 %|
|costs expensed | | |
|As_percentage_of_revenue_|_________________________|__________________________|
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
--------------------------------------------------------------------------------
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
indexes:
stockmarkets: Regulated free trade: Wien
language: English
