FACC Starts With Strong Q1 Into a Challenging Fiscal Year 2020
FACC AG started into the 2020 fiscal year with its best Q1 result to date. The measures of the cost reduction program totaling 50 million euros are beginning to take full effect. This has created a good starting position for the corona crisis. The effects of the COVID 19 pandemic will noticeably influence the further course of the financial year, although the full extent of the decline cannot yet be estimated due to the global uncertainty on the market.
"We implemented numerous cost-cutting measures in the previous year. These are having a lasting effect and are already showing positive effects on the company's earnings situation," said Robert Machtlinger, CEO of FACC AG. "With new orders and an optimized cost structure, we are creating a good basis that will provide us with significant support in overcoming the corona crisis, especially in these challenging times. In the coming weeks and months, our focus will be on three areas: the safety and health of our employees, the on-time supply of our customers and further adjustments to strengthen economic stability across all divisions. The crisis is particularly affecting the mobility and thus the aviation industry. We have simulated several market scenarios in consultation with our global customers and can act quickly and decisively depending on the global development of the situation.”
Revenues in the first three months of 2020 amounted to EUR 193.7 million (reference period 2019: EUR 205.6 million). The 5.8% decline is due to a reduction in development revenues to EUR 7.3 mil-lion (reference period 2019: EUR 17.1 million) in the first three months of 2020. Despite the current external circumstances, product sales remained at almost the same level.
Earnings before interest and taxes (EBIT) amounted to EUR 13.1 million in the first three months of 2020 (reference period 2019: EUR -8.3 million, negative result due to the discontinuation of the A380 and the related one-off effect resulting from the write-down amount of EUR 11.4 million).
FACC has reacted proactively and implemented extensive measures in the face of the Corona crisis
Since the Corona crisis became public, FACC has reacted quickly and implemented extensive measures by means of an internal CORONA task force. Management is now focusing on creating a balance between the protection of each individual employee, the economic stability of the company and providing support to our customers worldwide. Existing liquidity reserves were significantly expanded immediately through additional credit lines. Despite considerable developments taking place with regard to Corona, the health of the entire workforce has been safeguarded at all times, and all our customer requirements have been met entirely.
