LONDON-Airbus Group SE on Wednesday reported new earning impairments on two of its biggest airplane programs, posted a 4% drop in operating profit and warned that its full-year cash-flow target could be in jeopardy.
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Tom Enders, Airbus Group Chief Executive Officer, “We continue to see good demand for our products as shown by the brisk order intake at the Farnborough Airshow, with the production ramp-up supported by our robust and diversified commercial backlog”.
Before one-off items the company’s operating earnings fell by 11 percent to 1.7 billion euros.
Self-financed R&D expenses decreased to €1,309 million. A EUR1.1 billion gain from the creation of a rocket joint venture with France’s Safran SA and the sale of EUR868 million worth of shares in French combat plane maker Dassault Aviation SA bolstered the bottom line.
EBIT before one-off totalled €1,684 million, with Airbus Commercial’s EBIT before one off at €1,270 million, Helicopters EBIT before one-off at €144 million, and Defence and Space EBIT before one-off at €325 million. Helicopter revenues declined by 9%, in spite of delivery of 163 units.
Airbus Group posted 1.026 billion euros of charges for the A400M following gearbox problems and fuselage cracks and 385 million for the A350, whose deliveries have been held up by shortages of cabin equipment, triggering new penalty payments.
Airbus received 183 net commercial aircraft orders, down from 348 net orders previous year.
Airbus Group said ongoing negotiations over a revised delivery schedule for the A400M with seven European NATO buyer nations could have a “significant” further financial impact. Gross orders were 227 aircraft including 27 A350 XWBs.
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In Paris, Airbus shares were trading at 54.67 euros, up 5.74 percent.
