EANS-Adhoc: FACC AG FACC with dynamic business development in the first half
of 2016/17
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Disclosed inside information pursuant to article 17 Market Abuse Regulation
(MAR) transmitted by euro adhoc with the aim of a Europe-wide distribution.
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Mid Year Results/6-month report
20.10.2016
- Significant sales growth thanks to increases in all three segments
- Development of earnings as expected
- 3,341 employees on board: growth continues
- Stability, innovation and sustainability as key pillars of success
Ried, 20 October 2016 - In the first six months of fiscal year 2016/17, FACC AG
recorded sustained strong growth thanks to the continued positive development in
the civil aviation industry.
The strong global demand for aircraft and the sustained high level of OEM
aircraft deliveries led to an increase in sales to 329.8 million EUR in the
first half of 2016/17 (compared to 270.1 million EUR in the same 2015/2016
period). The 22.1% rise in sales revenues was a consequence of the significant
increase in product sales of 22.8% or 56.5 million EUR to 303.7 million EUR,
with all three segments reporting increases. Main drivers are the Airbus A320
family, the Airbus A350 XWB, the Bombardier C Series, as well as the Embraer E2
jet. In the first half of 2016/17, development revenues rose by 3.4 million EUR
to 26.1 million EUR. "FACC builds on the three key pillars of stability,
innovation and sustainability," said Robert Machtlinger, CEO of FACC AG, "which
contributed to us achieving a solid development in the first half of 2016/17."
The earnings development in the first half of 2016/17 developed nearly within
the framework of expectations. In the first half of 2016/17, the earnings before
interest, taxes and fair value measurement of derivative financial instruments
(EBIT) amounted to 4.6 million EUR. The result of the current period under
review includes also nonrecurring expenses of 1.4 million EUR that are
associated with the "Fake President Incident". Costs for short-term personnel
measures - such as the increase in leased staff - led to a temporary increase in
costs in the second quarter.
The first half of 2016/17 was characterized by the series production of new
projects. The activities around the significant ramp-up to series production of
the A350 XWB, in particular, took center stage. The associated challenges with
respect to delivery reliability and quality were pursued with the highest
priority and mastered. This also involved a substantial increase in the number
and qualification of employees in all segments - the FACC workforce was
increased by 354 employees in the reference period and, as of 31 August 2016,
amounted to 3,341 employees (FTE). "This stable employee growth is the result of
full order books and new projects. The fact that we are able to assert ourselves
so well in international competition is due to our company's innovative
strength," said Machtlinger. "Thanks to our crew's extensive know-how and
expertise, we are developing highly efficient and bespoke technologies for our
customers, supporting their sustainability strategies and contributing to our
sustainable economic growth."
In addition to the OEM business that is plannable in the long term, FACC AG has
also intensified its efforts to exploit and develop the maintenance and repair
market for civil aircraft (MRO business). In the second quarter, FACC was
commissioned to retrofit 110 A320 aircraft cabins, as well as up to 12
first-class cabins of the A330. It has also been possible for FACC to acquire
various development contracts. These include orders for the development of the
passenger cabin of a 70-seater turboprop aircraft, research contracts for space
flight components and orders for the further development of materials and
processes for the production of composite components for implementation in very
high unit numbers.
The locations in Upper Austria are being further expanded in line with
sustainable growth and positive forecasts for future requirements. In addition
to the activities carried out in the course of the business year, further
investment measures for the financial year 2017/18 are also being examined and
developed. At the same time, special "Operational Excellence Projects" have been
launched in order to continuously strengthen profitability. These projects aim
at increasing the level of automation and cutting back on product process costs.
Furthermore, the outsourcing of production for simple composite parts is being
progressed. These projects are beginning to show an impact and the
implementation of these activities will be a focus again for the business year
2016/17.
Outlook
For the second half-year period of 2016 /2017, FACC also anticipates a stable
development of the business performance. The ramp up of series production of new
projects, especially those for the Airbus A350 XWB, as well as the long-term
demands for other aircraft families, such as Boeing 787 and Airbus A320, will
sustainably positively influence FACC's development. As a result of the balanced
and modern FACC product and customer portfolio, the company will be in a
position to profit from the general growth expected in virtually all aircraft
families. The solid order backlog and the course of business correspond to the
management's expectations. In addition to a two-figure growth in revenue also
over the year, our attention continues to be oriented towards achieving our
earnings targets. "Stability, innovation and sustainability - we must continue
to do everything we can to further strengthen these three successful pillars,
thereby continually improving the Group's earnings and financial strength in the
coming periods," said Machtlinger.
Further inquiry note:
Investor Relations:
Manual Taverne
Director Investor Relations
Mobil: 0664/801192819
E-Mail: m.taverne@facc.com
end of announcement euro adhoc
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issuer: 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
