Austrian composites manufacturer FACC has cited start-up costs for new programmes after its first-quarter operating profit declined by nearly two-thirds.
EBIT fell to €7.4 million ($8.3 million), from €19.3 million in the first three months of 2018.
FACC chief executive Robert Machtlinger says the reduction was "mainly due to the ramp-up of series production of new projects and the associated additional costs" and notes that last year's result had been a "very good" one.
He sees the manufacturer's overall activity developing "in line with the market" in 2019.
"After years of strong growth, we see a global flattening of the growth curve, accompanied by a temporary stabilisation of production rates," he adds.
Revenue increased by 2.2% to €194 million in the first quarter.
The growth is attributable to an increase in development revenues to €179 million, says FACC.
In May, the company acquired a site in Croatia to build a cabin equipment manufacturing facility.
Construction is scheduled to begin in October, ahead of the planned launch of operations in March 2021.
FACC says the facility will be used to manufacture cabin components for commercial aircraft and business jets with "state-of-the-art fibre-composite technology in the first phase", and is designed to be expanded in modules in two further stages.