Airbus profits slip

28 Oct 2016  2054 | World Travel News

PARIS Airbus Group on Wednesday posted a 5% fall in January to September net profit to 1.81 billion euros (USD2 billion) as it revealed it intends to deliver more planes than initially forecast this year.

Citing stable overall sales of 43 billion euros for the period, the company said it would seek to raise deliveries to 670 planes, a jump of 20 aircraft, in order to hit its annual earnings targets.

“As expected, the nine-month performance reflects the heavily back-loaded aircraft delivery schedule, ongoing production ramp-up and transition to new versions of our A320 and A330 aircraft,” said CEO Tom Enders.

inside no 10“For the remaining months of the year we remain totally focused on deliveries to hit our earnings and cash targets,” he added.

Financial director Harald Wilhelm indicated Airbus was targeting delivery of “more than 670 planes” to meet full-year earnings targets.

Wilhelm conceded that, with 462 deliveries to end September, there remained much still to do but that the firm was counting on suppliers to help them hit the revised total.

January to September orders netted Airbus 73.2 billion euros — down from 111.9 billion for the same period of 2015. At the end of September, Airbus said it had 986 billion euros of orders booked.

Airbus last month said it would carry out restructuring to cut costs without indicating the scale of potential job cuts amid slow sales for the A380 super jumbo.

The company has been ramping up deliveries of its A350 widebody and single aisle A320 models but has seen pricing pressures on its A330 widebody plane ahead of the scheduled introduction next year of the updated A330neo.

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