EANS-News

FACC AG / Solid performance in the first quarter of 2014/15 - Seite 2

million), which means a change of EUR -6.4 million. The change in the
earnings position is also materially attributable to the higher
amount invoiced for development services in Q1 2013/ 14. In the first
quarter of the current fiscal year 2014/15 the FACC Group had not
planned to invoice a similar amount and as a result earnings are down
relative to the previous year. In addition, the FACC Group also
started up a number of new projects in the Interiors segment. This
also impacted the results of the first quarter of the fiscal year
2014/15. Given the extensive learning curve factors, new projects
affect production costs in the early phases. The FACC Group currently
expects to submit further invoices for development services in line
with the internal planning. After the first quarter, however, the
production costs of these programs are developing as planned. The
weakening of the EUR/USD exchange rate during the past 12 months
resulted in a weakening of the hedged EUR/USD exchange rate. Although
expected, this also had a negative impact on the earnings position.

In the first quarter of 2014/15, investments were made in accordance
with the investment budget and amounted to EUR 11.4 million (Q1
2013/14: EUR 11.2 million). Capitalized development costs contained
in investments amounted to EUR 6.0 million (Q1 2013/14: EUR 3.2
million), mostly driven by engineering services associated with the
development of the Airbus A350-1000 exerting the greatest influence.
The expansion of production capacity in the Interiors segment has
mostly been completed and is being put into operation as planned.
Measures aimed at raising efficiency - particularly with respect to a
reduction in production costs, such as learning curve effects, the
promotion of synchronized production, and a reduction in the cost of
quality and material costs - are being implemented.

As at 31 May 2014, staff numbers amounted to 3,055 employees,
compared to 2,458 employees per 31 May 2013. At the Austrian sites,
staff numbers increased from 2,590 to 2,681 employees (+91 employees
or 3.51%) between 1 March 2014 and 31 May 2014, with the majority (77
employees) being added in production. The FACC Group estimates that
staff numbers will remain unchanged in the development and
administrative areas over the coming quarters.

Outlook The commercial aerospace business environment continued to
develop positively in the first quarter of 2014/15. From a current
perspective, and on the basis of the orders currently booked for the
remaining quarters of the fiscal year, the FACC Group assumes that