Home » News » The FACC is preparing for the time after Corona »Leadersnet

The FACC is preparing for the time after Corona »Leadersnet

2019 business results confirmed, new orders signed for $ 800 million, short-time work and Robert Machtlinger’s supervisory board mandate extended until 2025.

As part of an online press conference, the FACC confirmed on Wednesday the pre-announced business results for the short fiscal year 2019 (March 1 – December 31), which remained unchanged after the audit. stayed. New orders worth $ 800 million are said to help cushion impending market corrections, but the general economic situation as a result of the Covid 19 crisis cannot yet be assessed. The FACC therefore adopts a comprehensive package of measures to protect the workforce, secure jobs and economic stability.

“The aircraft industry is currently experiencing challenging times. While the forecast was still largely stable in the previous year, it is currently not possible for the entire industry to make a short-term and serious assessment of the market. New orders from existing as well as new customers with a total order value of 800 million. USD are of course very gratifying, but under the new Corona framework this aspect and the result for the financial year 2019 are also taking a back seat. Our focus is on assessing the immediate future and the direction of the company during and after coping with the Corona crisis. We have to In doing so, we find the optimal balance between protecting our workforce – that is the most important thing – and struggling for the necessary economic stability, securing financial staying power and the trust of our customers Power standing do to secure the jobs of our workforce, “said CEO Robert Machtlinger.

“Special thanks go to the entire FACC workforce, who supports the measures taken with tremendous solidarity and understanding and thus provides excellent support for the company,” Machtlinger added with thanks.

Corona virus: effects on FACC

Against the background of the current development in the international aviation industry in connection with the COVID-19 crisis, which will affect the market side and our own plants, we currently have to assume that there will be noticeable demand and demand in the coming quarters Production restrictions will come. From today’s perspective, the effects on the earnings position of the group for at least 2020 and also in 2021 are currently difficult to assess. From today’s perspective, we assume that a serious market assessment will not be possible before mid-2020. “The aviation industry is exposed to a tough stress test unexpectedly and through no fault of its own,” Machtlinger says. “The situation is very uncertain and changes daily and hourly. We are in constant consultation with our international customers and have taken the necessary precautions to be able to react quickly to changes to be able to react. “

“The main goals are to protect the workforce and ensure economic stability”

Against this background, the Supervisory Board and Management Board resolved the following package of measures at the meeting on March 24, 2020. In the current environment, FACC has two main goals: to protect the entire workforce and to ensure economic stability. The aim is to keep production interruptions as low as possible. As a technology partner, FACC is an integral part of a global manufacturing network for the aerospace industry and is the only approved supplier for the systems manufactured. In this way, as a system-critical producer, we will ensure the best possible supply for our customers. This applies as long as the safety of our workforce allows, our customers request deliveries from us or the material supply chain or measures by the government (s) do not prevent this.

The activities to reduce cost structures that were started before the Covid 19 crisis will be continued in a decisive manner. Additional measures, adapted to a new market situation, are being worked out. The investment budget for 2020 is being rescheduled to meet the requirements of the market. The measures for vertical integration of strategic components and materials defined in the fourth quarter of 2019 will continue unreservedly and accelerated.

Three months of short-time work for the majority of the workforce

Due to the current situation in connection with the Covid-19 crisis, it was decided to re-examine the investments in the Croatian location and to delay implementation after a reassessment of the prevailing market situation. The need for the location to reduce manufacturing costs in the medium and long term is expressly stated.

Against the background of strengthening the company’s liquidity, the Supervisory Board and Management Board will propose to the Annual General Meeting not to distribute a dividend for the short financial year 2019. In view of the prevailing general situation, the global slump in air traffic activity and the resulting strong fluctuations in order requests, short-time working will be requested for a majority of the FACC workforce on April 6, 2020, for a period of at least three months. (red)

www.facc.com

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