After the challenges of 2020, the aerospace market is once again showing signs of stability, according to aviation supplier FACC, which said it returned to profitability in the first half of 2021. FACC said it “reacted quickly and focused to the changed framework conditions during the pandemic”. The company reported half-year revenues of 240.2 million euros for 2021 and a half-year EBIT profit of EUR 2.9 million.
After a difficult 2020, the aerospace industry is experiencing a slight upswing again, albeit with regional differences: Continental air traffic in the key markets of China, the USA and ultimately also in Europe has developed positively in recent months. The desire for air travel is increasing – and so is the demand. As expected, intercontinental travel is recovering more slowly due to different quarantine requirements across the continents, the company said.
“Our goal was the turnaround and we have successfully achieved it. FACC responded quickly to the sudden challenges with a stringent efficiency enhancement program. In addition to the necessary adjustments in the core aerospace business, we have expanded our strategy to include drones and space applications,” said Robert Machtlinger, CEO of FACC AG. “We are noticing a steady recovery in the aerospace market after the first six months, and the forecasts for 2022 also promise a further increase in demand.”
Revenues of 240.2 million euros are in line with FACC AG’s expectations for the first half of 2021, while consolidated revenues for the second quarter of 2021 were 20.8 percent higher than the quarterly revenues of the previous year. EBIT for the first half of 2021 amounted to 2.9 million euros and has increased by 37.3 million euros compared to the first half of 2020. “We are on a solid course, have adjusted all cost structures accordingly and are pursuing the goal of further expanding our market shares in all business areas,” said Machtlinger.
The second half of 2021 is showing a continued positive development in the industry. FACC expects customer call-offs to remain stable and well predictable in the coming months and beyond. Based on current developments, the management still expects a turnover of around 500 million euros for the full year 2021. Due to the earnings development in the first half of the year and the consistent implementation of cost cutting measures, EBIT should be slightly positive for the year as a whole.
For 2022, the company anticipates renewed growth: programs of key importance to FACC stand to benefit from developments on the market. The Airbus A320 family, FACC’s most important aircraft platform with a share in group sales of more than 30%, is performing particularly positively. Planned new projects will provide an additional boost. “Based on the current developments, we anticipate a return to our growth path from 2022 onwards,” said Machtlinger.