Plane parts maker FACC sees significant production restrictions until year-end (updated)
12/05/2020 07:28
(Adds detail, background)
VIENNA, May 12 (Reuters) - Plane parts maker FACC FACC.VI
said it expects significant demand and production restrictions
this year as the coronavirus outbreak has forced plane makers to
pause production to adjust to lockdowns and cut future output
due to weaker demand.
However, a solid and reliable forecast for the full year was
not possible in the current market environment, FACC said on
Tuesday.
The group, owned by China's Aviation Industry Corporation
(AVIC) 000768.SZ , makes components for wings, tail assemblies
and fuselages as well as engines and cabin interiors for all
major planemakers.
Many carriers around the world have grounded the bulk of
their fleets and halted aircraft deliveries in response to the
pandemic, leading Airbus AIR.PA - which accounts for around
half of FACC's revenues - and Boeing BA.N to cut production
rates.
FACC reported earnings before interest and tax (EBIT) of 13
million euros ($14.06 million) for the first quarter after
write-downs due to Airbus's AIR.PA production stop of the A380
led to a loss in last year's reference period.
Revenues fell 5.8% to 193.7 million euros, FACC said, adding
that payments from all major customers including Airbus, Boeing,
Bombardier, Embraer and Chinese plane maker Comac contributed.
The Austria-headquartered group also said it has sufficient
credit lines to repay a 90 million euro bond that is due on 24
June 2020.
FACC had already announced that it would not pay a dividend
for last year and would re-evaluate a 33-million-euro project in
Croatia as part of measures to deal with falling demand due to
the coronavirus. It also applied for state aid. urn:newsml:reuters.com:*:nL8N2BI1Y6
($1 = 0.9248 euros)
(Reporting by Kirsti Knolle
Editing by Michelle Martin)
((kirsti.knolle@thomsonreuters.com; +43 1 2530 1650 13;))