Facc's Operating Profit Falls As Phase: out of A380 bites (updated)
15/10/2019 07:29
(Adds details on outlook, background)
VIENNA, Oct 15 (Reuters) - Plane parts maker FACC's
FACC.VI second-quarter operating profit fell 6% as it produced
fewer components for the Airbus AIR.PA A380 and the Boeing
BA.N 737NG due to the announced phase-out of these planes.
The group, owned by China's Aviation Industry Corporation
(AVIC) 000768.SZ , reported earnings before interest and tax
(EBIT) of 8.6 million euros ($9.5 million) on largely flat
revenues of 179.7 million in the three months through
end-August.
FACC makes components for wings, tail assemblies and
fuselages as well as engines and cabin interiors for all major
planemakers.
Around half of FACC's revenues come from Airbus, which
reported a 13.5% rise in nine-month deliveries, well ahead of
U.S. rival Boeing, whose deliveries nearly halved due to the
delivery halt of the B737 MAX. FACC does not supply the new
aircraft, which has been grounded after two deadly crashes.
So far 2019 has been a slow year for the commercial
aerospace industry, beset by negative headlines on safety and
trade tensions. FACC said in its half-year report that while
production rates of all major aircraft types had stabilised at a
high level no significant rate increases were expected for 2020.
FACC said it expects sales of around 600 million euros and an
EBIT margin of close to 6% for its shortened financial year.
From 2020 the group will report per calendar year, whereas the
current financial year started in March.
($1 = 0.9068 euros)
(Reporting by Kirsti Knolle
Editing by Tassilo Hummel and Michael Shields)
((kirsti.knolle@thomsonreuters.com; +43 1 53 11 22 55;))