Plane parts maker FACC drops dividend, re-evaluates Croatia deal (updated)
25/03/2020 08:25
* No dividend for last year after 0,15 eur/shr in 2018/19
* Large part of staff to start short-time work in April
* 33 mln eur plant project in Croatia delayed
* $800 mln in new orders
(Adds CEO, short-time work, new orders, background)
VIENNA, March 25 (Reuters) - Plane parts maker FACC
FACC.VI said it would not pay a dividend for last year and
would re-evaluate a 33-million-euro ($36 million) project in
Croatia as part of measures to deal with falling demand due to
the coronavirus.
The group, owned by China's Aviation Industry Corporation
(AVIC) 000768.SZ , said in view of a global slump in air
traffic and strong fluctuations in orders, it would cut working
hours for much of its staff from April 6 for at least three
months.
"The situation is very uncertain and changes daily or
hourly," Chief Executive Robert Machtlinger said. "We have to
find an optimal balance between protecting our workforce... and
struggling to achieve the necessary economic stability, secure
financial stamina and maintain the trust of our customers."
New orders from existing and new customers worth $800
million were a good sign, he said.
The coronavirus pandemic has rocked airlines and planemakers
and put them under pressure to save cash. Boeing BA.N has
announced it would halt production of most widebody jets. Airbus
AIR.PA , which accounts for around half of FACC's revenues,
resumed partial output on Monday after a four-day shutdown.
FACC makes components for wings, tail assemblies and
fuselages as well as engines and cabin interiors for all major
planemakers. It employs 3,500 people in 13 countries, many of
them in its home country.
Austria has introduced a 38-billion-euro aid package in
response to the coronavirus crisis including subsidies for
short-time work agreements under which the state takes over
compensation payments and social security and tax contributions.
The impact of the coronavirus on FACC's 2020 and 2021
earnings was difficult to assess, and a detailed forecast might
not be possible until summer, the group said.
FACC announced last year that it would build an automated
digitized production complex in Croatia that was expected to
start production in 2021. Now that would be re-evaluated as part
of a general investment review, FACC said, although it still
planned to continue the project.
($1 = 0.9242 euros)
(Reporting by Kirsti Knolle; editing by Thomas Seythal and Nick
Tattersall)
((kirsti.knolle@thomsonreuters.com; +43 1 2530 1650 13;))