FACC AG Reports Revenue Growth, Earnings Decline in Q1 2014/15
Aerospace component manufacturer FACC AG reported a 6.2% increase in first-quarter 2014/15 revenue to EUR 119.7 million. Earnings decreased year-on-year due to the ramp-up of new projects and currency effects.
FACC AG, an aerospace component manufacturer, experienced revenue growth in the first quarter of the 2014/15 fiscal year, with sales reaching EUR 119.7 million, a 6.2% increase compared to EUR 112.8 million in the prior year.
Despite the revenue increase, the company's earnings before interest, taxes, and fair value measurement of derivative financial instruments (EBIT) fell to EUR -5.3 million from EUR 1.2 million in the same period last year. This decline was attributed to higher development service invoicing in the previous year's first quarter and the costs associated with initiating new projects in the Interiors segment, which incur higher production expenses early on. Additionally, the weakening EUR/USD exchange rate negatively impacted earnings.
FACC confirmed its full-year guidance, forecasting high single-digit revenue growth for fiscal year 2014/15. The company expects operating profit to be slightly above the previous year's level. The demand for new, more efficient aircraft is expected to remain strong, supporting FACC's market outlook.
Investments in the first quarter amounted to EUR 11.4 million, slightly up from EUR 11.2 million in the prior year. Capitalized development costs increased significantly, largely due to engineering services for the Airbus A350-1000 program. The company's workforce grew to 3,055 employees as of May 31, 2014, compared to 2,458 employees a year earlier, with the increase primarily in production roles.