FACC 1Q 20 - EBIT ahead of expectations, revenue decline yoy
FACC released its 1Q results this morning, reporting a relatively solid quarter which was not yet impacted by any substantial Covid-19 impacts. Although revenues of EUR 194 mn were down by 6.8% yoy (mostly driven by ca. EUR 10 mn less development revenues) they were broadly in line with our expectations of EUR 195 mn. EBIT of EUR 13.1 mn and net profit of EUR 8.6 mn were slightly better than anticipated mostly due to good Engines & Nacelles and Interiors margins. A yoy comparison is difficult since 1Q 20 was defined by the impairment of capitalized development costs for the A380 (EUR 11.4 mn) and an unspecified amount of production ramp-up costs in Interiors. A build-up of working capital of EUR 17 mn (mostly due to increased inventories and receivables) resulted in a negative 1Q FCF of EUR 7 mn.FACC AG is an Austria-based company engaged in the aerospace and defense industry. The Company specializes in the manufacture of aircraft parts and components. It divides its business into three divisions: Aerostructures, Engines & Nacelles, and Interior. The Aerostructures division covers control surfaces, fairings and wing components. The Engines & Nacelles division provides engine and nacelles components. The Interior division offers interior design services for commercial aircraft, business jets/private jets, freighters and helicopters. The Company's services range from on-site support with field engineering, spares service, and repairs to assembly training of customer staff for components and systems delivered by the Company. The Company's products are manufactured at four production sites in Austria.
The Institutional Equity Research team of Raiffeisen Bank International AG covers 85 stocks from Austria, Central & Eastern Europe with sell-side research and thus levers our local broker status with excellent company relationships. For corporates in Austria, CEE and Western Europe, we offer co-sponsored research, which includes research coverage and marketing activities to investors. Additionally, through our Spotlight Research product we also shed light on leading European small and micro-caps, seeking greater visibility with investors.
The Institutional Equity Research team consists of roughly 15 analysts, both in Vienna and the CEE countries. Our analysts provide long-standing sector expertise in tandem with profound local market know how and a sectoral approach across the entire region.
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