FACC continues profitable course into third quarter 2021

Photo Credit: FACC AG

FACC AG (Ried im Innkreis, Austria) reports continued profitable development in Q3 2021 and a positive quarterly operating result for the third time in a row. The aerospace group is also on target in terms of revenue— the third quarter reached €118.1 million, up 16.3% compared to the previous year — and is benefiting from the ongoing upturn in the industry. Nevertheless, FACC continues to focus on a tight group-wide cost and efficiency improvement program and the successive implementation of its 2030 strategy.

“The aviation market is increasingly recovering. We have achieved the targeted operational turnaround. To this end, we benefited above all from our flexibility for new market conditions, our consistent cost reduction and efficiency improvement program, and the exemplary commitment of our FACC crew,” reports Robert Machtlinger, CEO of FACC AG. “A number of important major projects that we have been able to secure in recent weeks increase FACC’s market share in its core business.”

One such project includes the extension of the company’s long-standing partnership with Airbus (Toulouse, France) with the order to manufacture the tail components for the largely composite A220 family. Moreover, the increasing recovery of the aviation market has been an important driver toward the demand for new short- and medium-haul aircraft, which has increased FACC’s A320 Family build rates. As a result, FACC expects to increase its workforce by around 100 employees in the coming months.

Operationally, the financial year to date has been in line with FACC’s management plans, so no significant deviations from the planned revenues and operating results are expected in the fourth quarter. Measures such as the commissioning of the new plant in Croatia to develop composite cabin components with an improvement in earnings in the Cabin Interiors division, the continuation of the vertical integration of strategic components and materials, a further reduction in inventory as well as the realization of a reverse factoring program are the focus of FACC in the fourth quarter.

For the next financial year (2022), FACC expects a slight revenue growth in the range of 5% based on the planned customer demands known today. The planned EBIT is expected to increase with sales growth and to be in the lower double-digit million EUR range. FACC continues to assume that pre-crisis revenues will be reached in 2024, and 2025 at the latest.

“It will still take time for global air traffic to reach heights like 2019 again. But the aviation industry is on a stable, good path and we will also follow this path with an eye to the future. Our Strategy 2030, which focuses on growth through innovation, research and the development of new solutions and materials, is our constant companion in this,” Machtlinger concludes.

The Interim Report Q3 2021 from FACC is available for download at Financial Reports.