May 12, 2020 / 6:03 AM / 20 days ago

Plane parts maker FACC sees significant production restrictions until year-end

VIENNA (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.

Reporting by Kirsti Knolle; Editing by Michelle Martin

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below