EANS-Adhoc: FACC reports significant improvement in key earnings-and financial ratios in the first quarter 2017/18
Sales growth in Q1 2017/18 continued / +12.9%
EBIT in Q1 2017/18 increased fivefold to EUR 10.8 mill.
Positive free cash flow of EUR 6.6 mill.
Outlook for the business year 2017/18 positive
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Financial Figures/Balance Sheet/Quaterly Report
In its first quarter 2017/18, FACC AG recorded a significant improvement in key
earnings- and financial ratios. Driven by the continued positive development in
the civil aviation industry revenues increased to EUR 184.3 mill. (Q1 2016/17:
EUR 163.2 million). This growth in revenues by 12.9% was driven by a
significant increase in product revenues of 13.4% to EUR 172.8 million in the
period under review (Q1 2016/17: EUR 152.4 million). As in previous quarters,
the main drivers of product revenues were the Airbus A320 family, Airbus A330,
the Airbus A350 XWB, Boeing 737, Boeing 787, as well as Bombardier Challenger
350 and Embraer Legacy 450/500 including the corresponding engine programs.
Earnings before interest and taxes (EBIT) amounted to EUR 10.8 million in the
first quarter of 2017/18 (Q1 2016/17: EUR 2.0 million). The increase in product
deliveries along with several operating measures in connection with efficiency
optimization and cost cutting efforts led to a significant improvement in
earnings compared to the same period in the previous year.
The growth trend in the civil aviation industry is expected to continue moving
forward. The market analysis of the major OEMs confirm that passenger volumes
will show an annual growth rate of roughly 5%. Over the next two decades, the
global aircraft fleet, which currently amounts to 21,000 commercial aircraft
(source: market outlook, Airbus/Boeing 2016), will more than double to roughly
42,500 units by 2035. At the same time, 14,800 airliners from the existing
fleet will reach the end of their service life and be replaced by modern
aircraft models. Based on these estimates, a total of 36,300 new airliners will
be required over the next 20 years.
FACC will continue to pursue a sales target of one billion euros for the 2020/
21 financial year in line with the company's "Vision 2020". The contracts
with Bombardier und Rolls-Royce, which have been recently finalized, will
support FACC's growth strategy over the next few years. Besides, the company
expects to gradually increase the production rates of its most important
programs moving forward. Thanks to FACC's balanced and modern product and
customer portfolio, the company can profit from the general growth trend
currently underway in almost all relevant aircraft families. From today's
perspective, the company expects a moderate growth in revenues for the 2017/18
financial year. Based on the current market situation, demand is anticipated to
increase sharply again starting from 2018.
Besides, the management will continue to focus on strengthening the company's
earnings power and liquidity over the long term. Initiatives aimed at
increasing the degree of automation, the global supply chain management as well
as the ongoing expansion of the service and retrofit business should contribute
to further strengthening the Group's profitability. These measures will be
accompanied by a consequent and continuous improvement of the working capital.
end of announcement euro adhoc
issuer: FACC AG Fischerstraße 9 A-4910 Ried im Innkreis
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