Aeroplane parts maker FACC upbeat on profit (updated)
16/05/2018 09:07
* Posts 2017/18 net profit of 39.7 mln eur
* Aims to increase earnings substantially in 2018/19
* Targets single-digit percentage increase in sales
(Adds detail, background)
VIENNA, May 16 (Reuters) - Austria-based aeroplane parts
maker FACC FACC.VI said on Wednesday it expects to
substantially improve earnings in its current business year by
increasing automation and by outsourcing production of some
components.
The Chinese-owned company, which supplies the world's
leading planemakers, more than doubled its net profit to 39.7
million euros ($47 million) in the year to end-February from
15.2 million the previous year.
"The initiatives to increase the level of automation and
productivity and to outsource the production of simple composite
parts to the supply chain will continue (in 2018/19)," FACC said
in its annual report. "This will lead to a substantial
improvement in earnings."
Last year's earnings increase was helped by strong demand
for the components it produces for Airbus's AIR.PA A320
aircraft family, for the A350 and for Boeing's BA.N 787, it
said.
FACC said it is targeting a single-digit percentage increase
in 2018/19 sales compared with last year's 750.7 million euros,
and confirmed its 1 billion euro sales goal for the 2020/21
business year.
The group expects new generations of short-haul aircraft to
hit the market between 2022 and 2025, and aims to supply large
manufacturers with lightweight surface parts for these planes,
chief executive Robert Machtlinger said in March. urn:newsml:reuters.com:*:nL5N1QO225
FACC is also working on developing surfaces able to adjust
to changing conditions, such as pressure and suction in
different phases of a flight, to meet future needs.
FACC shares were trading about 1 percent lower at 20.85
euros in a flat market at 0800 GMT.
The stock, which joined Austria's blue chip index ATX .ATX
in March, has gained more than 20 percent since the beginning of
the year. The shares traded at around 7 euros a year ago.
FACC was acquired by a unit of Chinese state-owned Aviation
Industry Corporation of China 000768.SZ in 2009.
($1 = 0.8454 euros)
(Reporting by Kirsti Knolle, editing by Louise Heavens and
Adrian Croft)
((kirsti.knolle@thomsonreuters.com; +43 1 53112 255; Reuters
Messaging: kirsti.knolle.thomsonreuters.com@reuters.net
www.reuters.com))