Fokker Technologies today publishes its annual results for the year 2013
- Step up in profitability with stable revenue
Commercial Aircraft Leasing
|Result before tax||€11.4m||€9.6m||+18.7%|
* Non IFSRS measure
- After two years of strong growth (+25% in total or less stable and amounted to € 762 million ( € 769 million in 2012)
- Operational EBIT for the Group increased to € 47 million (2012: € 44 million).
- The Design & Build business units consisting of Fokker Aerostructures, Fokker Landing Gear and Fokker Elmo showed robust margins with operational EBIT up by 25% to €50 million (2012 €40 million).
- Operational EBIT margin for the Design & Build units increased to 8,9% (7,3% in 2012).
- The Services business unit experienced an accelerated decline of revenues related to the Fokker fleet. Restructuring plan started for downsizing the organisation.
- Net profit was € 11 million and in line with 2012 at € 10 million.
- The Operational Cash Flow strongly improved to € 26 million (2012 € 18 million)
Sjoerd Vollebregt CEO, commented:
“In 2013 Fokker Technologies made good progress in the Design & Build units, capitalizing on a good mix of programs, and strong operational improvements. Our operational and financial performance shows we are on solid ground, and well positioned given our order outlook and future opportunities. Over the last few years we have made strong progress in both the quality and spread of our earnings. The company has a healthy balance in its portfolio between both civil and defense contracts, and between new and on-going programs. The positive decision of the Dutch government to procure the Lockheed Martin F-35 further strengthened the company’ s position.
The Group was affected by the substantial reduction in earnings from the Fokker fleet at Fokker Services. There is a growing portion from other than Fokker aircraft programs but rightsizing of the cost base is crucial. The uncertainty on the US claim remains.”
- Stable revenue was the result of further growth in the Design & Build business units – plus 2% compared to 2012 – up to a level of €587 million and a decrease in the turnover of the Service business unit of 7%.
- The production volumes for the large commercial aircraft were comparable to the previous year. Also the regional jet production volumes remained stable and total revenue largely stayed the same in this sector. Although Fokker has started production on new programs like the A350XWB and the Bombardier CSeries these build rates were small in 2013.
- Revenue related to design activities increased. For the new Bombardier CSeries aircraft Fokker Elmo delivered substantial incremental design services and required more effort to produce the first deliveries.
- Revenue in the defense sector increased slightly, in particular on the F-35 program.
- Total revenue in Services decreased as a result of developments in the Fokker fleet. Although aEURuFokker had anticipated this, the actual decrease was higher. The considerable growth for the fleet of Bombardier Dash 8 was not able to compensate the loss of the Fokker revenue.
- In 2013 Fokker focused on improving the gross margins of its programs which has been achieved by significant costs reductions and improved processes. As a result the Design & Build business units increased their operational EBIT with €10 million to €50 million and Operational EBIT margin increased from 7.3% to a satisfactory level of 8.9%.
- Due to the decline of the Fokker fleet, the operational EBIT of the Services business unit decreased to €4 million from €10 million resulting in a Operational EBIT margin of 1.9% (2012 4.5%)
- Operational EBIT for the Group amounted to €47 million and was € 3 million higher than in 2012. Excluding exceptionals and the amortization of Purchase Price Allocation assets the Operational EBIT margin of the Group increased from 5.8% in 2012 to 6.2% in 2013.
- In total, the reported operating result of the group increased to €27 million from €21 million in 2012, benefiting from lower amortizations on capitalized development costs, and including an impairment of tangible fixed assets and inventory for an amount of € 5 million relating to Fokker Services.
The mid-term outlook target is to achieve a Group Operational EBIT margin of 8% - 10%. This will become achievable following the migration of the order book from the development phase to the full production phase, cost savings and the restructuring of Fokker Services. This business unit needs to become more cost competitive and change the product portfolio in view of the declining Fokker fleet. Fokker Technologies' overall outlook remains strong, partly based on the high number of new projects the group is working on, including the Airbus A350, the Lockheed Martin F-35 and the Dassault F5-X projects. These are multi-year contracts, which will generate strong growth in the next years. For 2014 the group remains focused on strengthening the market position in aerostructures and electrical systems and repositioning Fokker Services.
Source : Fokker Technologies