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Turnover / balance sheet / quarterly report
Ried im Innkreis –
- The slow recovery of global air traffic is noted, but with strong regional differences between world markets
- Sales in the first nine months of 2020 at 392.8 million euros, 32.6% less than in the previous year (582.6 million euros)
- Operating income of – 57.5 million euros
- One-off effects of 48.5 million euros weighed on the result
- The internal optimization program goes into effect
- 30% increase in demand in September
- Staff adjustment at the beginning of the fourth quarter
- Outlook for 2020 as a whole confirmed
The development of FACC AG’s business in the first nine months of financial year 2020 (1.1.-30.9.) Is still conditioned by the effects of the COVID-19 pandemic. The global economic recession and the economic consequences for the global aviation industry are reflected in the group in a decline in sales and EBIT. At the same time, milestones were successfully implemented in group-wide optimization programs, project start-ups and future-oriented research. After months of very low demand, the first sustained positive trends can already be seen in Asia.
“Global flight volume has changed dramatically as a result of the Corona crisis since February, causing a significant decline across the market environment. This resulted in fare cuts for all major aircraft programs,” reports Robert Machtlinger, CEO of FACC AG, adding: “Despite the impacts that are difficult to assess and a difficult market situation have allowed us to remain fully efficient even in the lockdown phases and to reliably supply our customers.
Sales revenue for the first nine months of 2020 amounted to € 392.8 million. The decrease of 32.6% compared to the same period of the previous year (582.6 million euros) is due to the reduction of the construction rates of all the important aircraft programs for FACC. All FACC divisions (aerostructures, cabin interiors and engines and nacelles) were affected and recorded notable drops. Given the general situation, customer requests in July and August were up to 50% lower than the previous year. In September there was a clear change in trend, with demand in September around 30% above the level of the two previous months.
Reported earnings before interest and taxes (EBIT) amounted to -57.5 million euros in the first nine months of 2020 (comparison period 2019: 9.7 million euros). As previously reported, EBIT for the first nine months of 2020 includes one-time effects of impairments and changes in estimates in relation to the COVID-19 crisis and associated effects on the medium-term market environment, as well as allocation of a provision for costs of the social plan. In total, the result of the first nine months is loaded with special effects amounting to 48.5 million euros
The operating result, adjusted for special effects, amounted to EUR -9.0 million and was significantly influenced by the lower capacity utilization of the plants since the beginning of the second quarter of 2020 after the outbreak of the COVID-19 pandemic. The recovery of global markets is expected to progress slowly, reaching the pre-crown level, from the current perspective, until 2024. In response to new market assessments, the FACC announced in mid-September that a capacity adjustment it was unavoidable and, as a result, the group would reduce the workforce by 650 employees in the fourth quarter. A social plan was agreed for the affected employees. In addition, the FACC completed short-time work in almost all areas of the group at the end of September.
Prospects are confirmed on the basis of the comprehensive package of measures
The global crisis of the crown will keep society and markets busy for longer. FACC closely monitors and analyzes developments and takes specific strategic and operational measures to quickly and decisively adapt to new requirements. Fixed costs will be reduced with a group-wide optimization program, vertical integration will continue to be promoted in the metallurgy field in order to reduce material costs and the planned new construction of the FACC location in Croatia will be will adjust in terms of design and size or will be implemented with a delay. The outsourcing of previously outsourced components is going as planned and will increase the capacity utilization of the plants beginning in early 2021. “With the measures taken, we are securing around 100 highly skilled jobs at the location in the long term and thus avoiding the loss of valuable employee know-how From today’s perspective, we are planning annual sales of between € 500 million and € 520 million despite the fact that markets remain very dynamic. We continue to assume EBIT in the -55 range to -65 million euros ”, says Robert Machtlinger.
Constant orientation towards the future in the FACC approach
FACC is constantly investing in the future, even in a completely new market environment. “Research and development, innovation and reliability are central elements of our past and our future,” emphasizes Machtlinger. “On the one hand, we pay particular attention to issues of efficiency and sustainability, both in the FACC plants and in our lightweight construction systems, which allow for more efficient and CO2-saving flights. We also want to promote the new sector of air mobility urban with innovative solutions and in the space sector to advance more “. At the same time, business areas and markets are strengthened and expanded with new products. Examples are the first delivery of the A320 Airspace entrance area or the presentation of the LAV4ALL barrier-free toilet system developed by FACC in the after-sales service area. FACC sees great potential, especially in the area of after-sales services: the wide range of services and services is in high demand from airlines, MRO stations, and OEMs around the world. FACC is expanding this business area, since after the Chinese approval as a maintenance company, which was granted this year, FACC also obtained the international EN9110 certification. In Austria, FACC is the sole certificate holder, worldwide there are only about 800 companies. “As a provider of aviation products and services, quality standards and certifications are important to us. Recent awards received for our quality work by Airbus and Bombardier confirm that we are on the right track here,” said Machtlinger. As in the previous two years, FACC was recognized for its high delivery performance as part of the Airbus Supplier Quality Improvement Plan (SQUIP) program. The Bombardier Diamond Supplier Certificate also testifies to FACC’s superior performance in the areas of quality and delivery reliability.
About FACC
FACC is a leading global aerospace company in the design, development and manufacture of aerospace technologies and advanced light systems for aircraft. As a technology partner of leading manufacturers, FACC works together with its customers on solutions for the mobility of the future. Around the world, an airplane with FACC technology takes off every second. In the short fiscal year 2019, FACC achieved an annual turnover of more than 665 million euros. Around 2,800 people from 38 countries are employed in 13 international locations around the world. The company is listed on the Vienna Stock Exchange and is part of the AVIC Fortune 500 group, which provides access to the industry’s fastest growing markets. For more information, visit facc.com.
End of euro adhoc announcement
Attachments to the notification:
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http://resources.euroadhoc.com/documents/3124/5/10614145/0/FACC_Q3_2020_EN_REPORT.pdf
http://resources.euroadhoc.com/documents/3124/5/10614145/0/FACC_Q3_2020_DE_REPORT.pdf
Issuer: FACC AG
Fischerstrasse 9
A-4910 Ried im Innkreis
Phone: + 43/59 / 616-0
FAX: + 43/59 / 616-81000
Email: office@facc.com
WWW: www.facc.com
ISIN: AT00000FACC2
Indices:
Exchanges: Vienna
German language
Queries and contact:
Investor Relations:
Manuel Tavern
Investor Relations Director
Car: 0664/801192819
Email: m.taverne@facc.com
