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Financial Figures/Balance Sheet/Quarterly Report
Ried i. Innkreis -
Visible signs of a slow recovery of global air traffic, albeit with marked regional differences between world markets\nAt EUR 392.8 million, revenues in the first nine months of 2020 were 32.6 % lower than in the previous year (EUR 582.6 million)\nOperating result stands at EUR - 57.5 million\nSpecial effects of EUR 48.5 million have a one-time negative impact on earnings\nInternal optimization program is taking effect\nDemand up by 30% in September\nPersonnel adjustment completed at the beginning of the fourth quarter\nOutlook for the full year 2020 confirmed\nRied, 18 November 2020 - The business development of FACC AG in the first nine
months of the 2020 financial year (1 January - 30 September) continues to be
marked by the effects of the COVID-19 pandemic. The global downturn and the
economic repercussions on the global aerospace industry are reflected in a
decline in group revenues and EBIT. At the same time, milestones in the
implementation of group-wide optimization programs, project start-ups and
forward-looking research were successfully reached. After several months of
considerably reduced demand, the first sustained positive trends are becoming
visible in Asia.
"Global air traffic volumes have undergone major changes since February as a
result of the corona crisis. This has led to a significant downturn in the
overall market environment, thus triggering rate reductions in all major
aircraft programs," reports Robert Machtlinger, CEO of FACC AG, and adds:
"Despite the initial difficulty of accurately assessing the impact of the crisis
in conjunction with the difficult market situation, we have been able to remain
fully efficient and continue to provide our customers with reliable deliveries,
even during lockdowns."
Revenues generated in the first nine months of 2020 amounted to EUR 392.8
million. The decline of 32.6% compared to the same period of the previous year
(EUR 582.6 million) is attributable to the reduction in built rates in all
aircraft programs of major importance to FACC. All FACC divisions
(Aerostructures, Cabin Interiors and Engines & Nacelles) were affected and
recorded marked declines. In view of the overall situation, customer call-offs
in July and August were up to 50% lower than in the previous year. September saw
a clear turnaround, with demand exceeding the level of the two previous months
by approximately 30%.
Reported earnings before interest and taxes (EBIT) for the first nine months of
2020 stood at EUR -57.5 million (comparative period in 2019: EUR 9.7 million).
As previously stated, EBIT for the first nine months of 2020 include one-time
effects due to impairments, changes in estimates in connection with the COVID-19
crisis and the associated effects on the medium-term market environment as well
as the allocation of a provision for social plan costs. The result of the first
three quarters was negatively affected by special effects totaling EUR 48.5
The operating result, adjusted for special effects, amounted to EUR -9.0 million
and was strongly impacted by the reduced capacity utilization of the plants
since the beginning of the second quarter of 2020 following the onset of the
Global markets are expected to recover slowly and may not return to pre-corona
levels until 2024 from today's perspective. In response to the new market
forecasts, FACC announced in mid-September that capacity adjustments were
unavoidable and that the group would consequently reduce its workforce by 650
employees in the fourth quarter. A redundancy plan has been agreed for the
members of staff concerned. Moreover, FACC discontinued short-time work in
almost all areas of the group at the end of September.
Outlook confirmed on the basis of an extensive package of measures
The global corona crisis will continue to affect society and markets for a long
time to come. FACC is closely observing and analyzing current developments and
is taking targeted strategic and operational measures to quickly and resolutely
adapt to the new requirements. Thus, fixed costs will be cut by means of a
group-wide optimization program, vertical integration in the area of metal
processing will be further promoted in order to reduce material costs, and the
planned new FACC site in Croatia is to be implemented with a new design and
dimensions and/or with a time delay. The insourcing of previously outsourced
components is running according to plan and will increase the capacity
utilization of the plants from the beginning of 2021. "With these measures, we
will secure around 100 highly qualified jobs at our sites in the long term and
thus prevent the loss of valuable employee know-how. Although the markets are
still highly volatile, we are currently planning annual sales of between EUR 500
and 520 million. In terms of earnings, we are still expecting EBIT in a range of
EUR -55 to -65 million," says Robert Machtlinger.
Consistent future-oriented focus at FACC
FACC is consistently investing in the future, even in a completely new market
environment. "Research and development, innovation and reliability are key
elements of our past and our future," emphasizes Machtlinger. "On the one hand,
we are paying special attention to the topics of efficiency and sustainability,
both at our FACC plants and with regard to our lightweight systems, which enable
more efficient flying while reducing CO2 emissions. In addition, we wish to
drive forward the new area of Urban Air Mobility with innovative solutions and
to make further progress in the space environment."
At the same time, business areas and markets are being reinforced and further
expanded with new products. Examples include the delivery of the first A320
Airspace entrance area and the presentation of the LAV4ALL barrier-free toilet
system developed by FACC in the Aftermarket Services area.
In the Aftermarket Services segment in particular, FACC sees great potential:
The extensive range of products and services is in high demand by airlines, MRO
stations and OEMs worldwide. FACC is further expanding this field of business
after being awarded the international EN9110 certification following this year's
Chinese accreditation as a maintenance company. In Austria, FACC is the only
company to receive this certification among a total of only around 800 certified
companies worldwide. "As a provider of aerospace components and services,
quality standards and certifications are important to us. The awards we have
received only recently for our quality work from Airbus and Bombardier confirm
that we are on the right track," states Machtlinger. As in the two previous
years, FACC was awarded for its high delivery performance in the Supplier
Quality Improvement Plan Program (SQUIP) of Airbus. Bombardier's Diamond
Supplier certificate also testifies to FACC's outstanding achievements in the
areas of quality and delivery reliability.
end of announcement euro adhoc
issuer: FACC AG
A-4910 Ried im Innkreis
Digital press kit: http://www.ots.at/pressemappe/7665/aom
Akt. Indikation: 8.69 / 8.75
Veränderung zu letztem SK: -0.68%
Letzter SK: 8.78 ( 0.92%)
Virtuelle Konferenzen sorgen für Chancengleichheit zwischen kleinen und großen Unternehmen.
Manuel Taverne, FACC
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