FACC maintains growth course
FACC continues on its growth path – solid performance in the third quarter of 2018/19.
We achieved solid sales growth in both the third quarter and the first nine months of the financial year 2018/19. Our sales in the first nine months increased by 4.0% to EUR 589.2 million. Our earnings before interest and taxes (EBIT) rose by 5.3% to EUR 42.2 million in the first nine months.
- Solid sales growth of 5% to EUR 216.2 million in the third quarter of 2018/19
- Third quarter operating result (EBIT) up by 8% to EUR 17.1 million
- Substantial 30% increase in free cash flow to EUR 20 million
- Sales and EBIT outlook confirmed for the whole year
The 2018/19 financial year has so far been thoroughly positive and eventful for FACC. In addition to continuing our leading-edge investment program, we are also working intensively on the implementation of new projects that will lead to growth in the years to come.
Robert Machtlinger, CEO of FACC
Revenues in the first nine months of 2018/19 amounted to EUR 589.2 million (comparative period 2017/18: EUR 564.0 million). All of our three divisions - Aerostructures, Engines & Nacelles and Cabin Interiors - made an active contribution to sales growth. The Cabin Interiors segment, in particular, experienced substantial growth in line with expectations. At just under 10 percent, this is a particularly pleasing result.
Key drivers with respect to product sales remained unchanged compared to the previous periods. All major aircraft programs of our main customers Airbus, Boeing, Bombardier and Embraer as well as sales from the respective engine families continue to contribute to the Group's growth. For the first time, sales drivers now also include sizeable product deliveries in the double-digit millions for the Chinese ARJ 21 and C919 aircraft programs. Viewed from the perspective of current program planning, these sales are expected to increase at an above-average rate, especially in subsequent periods.
Operative earnings before interest and taxes (EBIT) amounted to EUR 42.2 million in the first nine months of 2018/19 (comparative period 2017/18: EUR 40.1 million).
In the first nine months of 2018/19, there was an increase of 124 employees compared to the same period of the previous year. The total headcount at the end of the third quarter of 2018/19 was 3,491.
In view of this development of our business performance in the first nine months of the 2018/19 financial year, we confirm our previous forecasts for the year as a whole:
For subsequent periods, the production rates of all major programs are confirmed as forecast by our management at the beginning of the year. With our well-balanced product and customer portfolio, we are able to benefit from the general growth experienced by the major aircraft families. FACC is particularly focused on processing the new orders signed last year, which are worth around EUR 750 million. The first significant revenues deriving from these new orders are expected for the first half of the 2019/20 financial year. Based on the current customer orders, we expect sales growth in the single-digit percentage range to a value of EUR 760 - 770 million for the 2018/19 financial year. Initiatives to increase profitability are to continue, which are expected to lead to an above-average increase in earnings. The operating result is expected to lie in the range of EUR 52 to 55 million.
The focus will continue to be on intensive cooperation with our customers worldwide. Active market development with the aim of increasing FACC's market share in the respective segments, the implementation of the FACC innovation drive in the fields of material, process and product development as well as measures to sustainably increase sales in the Airline Services and Maintenance segments are key areas of focus. By way of conclusion, the FACC Group will continue to drive forward its activities ranging from development and manufacturing to global supply chain management, thereby further strengthening its position as the technology partner of choice for the aviation industry. The implementation of the "Vision 2020" Group strategy with a view to strengthening and expanding its position of a Tier 1 supplier for customers such as Airbus, Boeing, Bombardier, Embraer as well as all well-known engine manufacturers has top priority for us.