FACC AG reports solid revenue growth and improved earnings for first half
Aerospace component manufacturer FACC AG announced on Thursday its first-half results for 2015/16, showing a 16.2% increase in revenue. The company also reported a significant improvement in earnings during the period.
Aerospace component manufacturer FACC AG reported on Thursday that it closed the first half of its 2015/16 fiscal year with solid revenue growth and a noticeable improvement in earnings.
Total revenues reached EUR 270.1 million, an increase of 16.2% compared to the same period in the prior year when revenues stood at EUR 235.9 million. This revenue growth was primarily driven by an increase in product revenues, which rose to EUR 247.3 million from EUR 212.8 million in the previous year. Revenues from development services remained stable at EUR 22.8 million.
The key programs contributing to the product revenue growth include the Airbus A321, Airbus A350 XWB, Bombardier Challenger 350, and Embraer Legacy 450/500. Earnings Before Interest, Taxes, and Fair Value Measurement of financial instruments (EBIT) improved to EUR 6.0 million from a negative EUR 14.5 million in the first half of 2014/15. This EUR 20.5 million improvement is attributed to higher product deliveries and operational efficiency measures.
FACC AG anticipates that this positive trend in both revenue and earnings will continue throughout the remainder of the year, expecting a high single-digit percentage increase. The company is actively implementing operational excellence initiatives to reduce production costs. Achieving the earnings targets for the 2015/16 fiscal year will depend on the successful implementation of these efficiency measures and ongoing customer negotiations.
The company maintains a robust order backlog of USD 5.2 billion.