FACC AG Reports Significant Earnings Increase in Third Quarter
Aerospace component manufacturer FACC AG has reported a substantial increase in operating earnings for the third quarter of fiscal year 2014/15. The company's operating earnings reached EUR 5.5 million, a significant improvement from the loss recorded in the previous quarter.
FACC AG, a manufacturer of aerospace components, announced a significant improvement in its financial performance during the third quarter of the 2014/15 fiscal year. The company's revenue increased by 4.7% to EUR 381.8 million for the first nine months. Operating earnings (EBIT) saw a substantial rise to EUR 5.5 million, a notable turnaround from a loss of EUR 9.2 million in the second quarter.
The revenue growth was primarily driven by an 18.8% increase in product revenue, offsetting a decline in development services revenue. Increased production rates for key aircraft programs, including the Airbus A321, A350 XWB, and Boeing 787, contributed to the uptick. All three of FACC's divisions—Aerostructures, Engines & Nacelles, and Interiors—experienced revenue growth.
CEO Walter Stephan commented that FACC has successfully met important project milestones, particularly for new programs like the A350 XWB. He highlighted the ramp-up of series production for new aircraft types and emphasized the positive impact of implemented optimization and stabilization measures on the company's earnings.
FACC invested EUR 55.3 million during the first nine months of the fiscal year, with significant capital expenditure directed towards development services for new aircraft and expanding production capacity. The company anticipates continued growth in global air traffic, which is expected to drive demand for new, more efficient aircraft. FACC projects full-year 2014/15 revenues to reach approximately EUR 580 million, with double-digit growth expected in product deliveries.