The FIGEAC A-O Group (ticker: FGA), a reference spouse of the main aircraft manufacturers, publishes its sales from the first quarter (April 1 to June 30, 2020).
Interrupted deliveries to consumers weighed on business a lot
The aerospace market felt all the effects of the Covid-19 crisis when global air traffic collapsed during the lockout period, forcing aircraft brands around the world to particularly reduce their production systems and inventories. 2020/21 (April 1 to June 30, 2020), or 55. 29% less year-on-year. On a comparable basis and at consistent exchange rates, the Group’s quarterly profit fell by 55. 32%.
Already affected by the closure of the Boeing 737 Max program, the Aerostructures department experienced a sharp decrease in its activity (-59. 98% in those published, -59. 94% in comparable terms) due to the Covid-19 crisis. The Group’s activities recorded a reduction in sales of 3. 2 million euros.
Workforce adjustment plans in reaction to an unprecedented crisis
As announced in the press release of 27 August, the Group will need to adapt its workforce in reaction to the current economic downturn in the air traffic sector to remain competitive and protect against the difficulties ahead. Employment.
Discussions continue with all the Group’s social partners, adding on the Figeac site, with the aim of concluding agreements so that they can enter into force in January 2021. Other measures are also being in France and internationally.
All measures taken under the operational optimization plan are expected to lower constant and structural prices by around EUR 30 million, and almost all effects of this plan will be visible in the 2021/22 monetary year. generate significant operational leverage as volumes recover, generating long-term money.
At the same time, the plan is expected to result in estimated one-off prices of between EUR 20 million and EUR 23 million, of which a maximum of this fiscal year (ending 31/03/2021) will be provisioned.
Bpifrance’s “Trump” Loan
FIGEAC AERO has received a “Trump” loan of 15 million euros from Bpifrance; in addition to government-guaranteed loans (totaling 80 million euros) received from its former banking partners. These budgets will ensure the future of the Group.
In addition, the Group is in talks with its banking partners about the terms and situations of its monetary covenants for the year ending March 2021 and negotiations are expected to end in the coming weeks, i. e. before the end of the first part of 2020. / 21.
New contracts are won, in line with those of the Group to expand in North America and diversify into the engine segment
FIGEAC AERO has been awarded a $250 million “lifetime” contract (at existing production rates) for the production of retail portions and subsets for the A320, A321 and B787 programmes. This new visitor has decided on the Group for the manufacture of small, medium and giant mechanical portions in aluminum and titanium, as well as subsets, basically thanks to a strategy of success deployed its global footprint. The Group won this main contract in a giant component due to its advertising and advertising positions in the US. And the know-how that has evolved in Europe for over 30 years. The contract is expected to contribute entirely to the Group’s profit base from 2022, to the $17 million song, after a first phase of acceleration.
FIGEAC AERO has also reached a long-term agreement worth approximately $50 million with a primary engine manufacturer. The Group’s Future Factory in France will produce complex engine portions for the A350 program based on the experience it has gained with other engine manufacturers. implementation phase, this contract will make a $5 million contribution to the Group’s annual turnover from 2022.
“Me and I are incredibly proud to have won those primary contracts through Tier 1 consumers, qualifying among the world’s leading consumers and by such gigantic quantities,” said Thomas Girard, VICE President of Sales and Marketing at FIGEAC AERO. “This crisis creates opportunities and strengthens the positions of systemic suppliers in the industry. We are confident that we will achieve other contracts like those, which will not require a really extensive capital expenditure, according to the roadmap explained through the Board of Directors and management. Committee. “
Perspective
Short-term forecasts are complicated because there is little visibility into a recovery in global air traffic and the effect it will have on deliveries from aircraft manufacturers FIGEAC AERO believes it cannot publish indicative targets for the 2020/21 monetary year, which would possibly be affected by a sharp drop in activity and timely restructuring costs.
For 30 years, FIGEAC AO has effectively established itself as one of the leading wives in the aeronautical sector and has developed abundant experience and a status quo forged in Europe and, more recently, in the US. Those assets will help you in your advertising drive.
The Group is also reviewing the role it could play in consolidating the aeronautical supplier market; it ranks as a leading player thanks to its leadership position in Europe, its presence abroad, its technological leadership and its combination of consumers and diversified products (fuselage, wings, tails and engines). The Group will explore all avenues to ensure its long-term viability and expand its activities.
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ABOUT FIGEAC AERO
FiGEAC AERO Group, a leading spouse of leading aircraft manufacturers, specializes in the production of structural parts, engine parts, landing gear and subsets in soft alloy and metal. FIGEAC A-O is a global organization with a presence in France, USA, Morocco, Mexico, Romania and Tunisia: the Group generated annual sales of 447 million euros as of March 31, 2020.