Sharp rise in costs

Despite sales growth: saving at FACC is the order of the day

Aircraft manufacturer Boeing has recently been in a tailspin due to strikes by the workforce.

(Bild: REUTERS/David Ryder)

After the enormous crash caused by the coronavirus pandemic, the race to catch up in the aviation industry remains unstoppable, even if strikes such as the recent one at Boeing are not exactly conducive. In any case, FACC can continue to benefit from the general upswing. The aircraft supplier from Upper Austria increased its turnover by 25 percent in the first three quarters of 2024. 

From EUR 513.9 million after three quarters of 2023, FACC increased its revenue to EUR 642.6 million by the end of September 2024 - a fact that the company, led by Robert Machtlinger, attributes to the continued strong growth of the aviation industry and the associated high demand for passenger aircraft.

Profit after tax at 5.2 million euros
However, the sharp rise in location costs in Europe and especially in Austria is putting pressure on the Innviertel-based company's earnings. Although the aircraft supplier was able to bring its earnings after tax into the black, it only achieved a profit of 5.2 million euros in nine months.

The company has already reacted to this: as early as August, Machtlinger and CFO Florian Heindl reported on the need to increase efficiency in production, i.e. higher build rates, which are to be realized while the workforce does not grow to the same extent. At the same time, a cost-cutting program was adopted. This will lead to a gradual and sustainable increase in profitability from next year.

Inventories to be reduced by 10 million euros
Inventories will also be reduced. The management expects to reduce inventories by at least ten million euros by the end of the year.