Airbus Is on Track to Deliver Fiscal Year Outlook After Good 2Q -- Earnings Review
31 July 2019 - 11:01PM
Dow Jones News
By Olivia Bugault
Airbus SE (AIR.FR) reported second-quarter results on Wednesday
morning. Here's what we watched:
SALES FORECAST: Revenue was up 23% to EUR18.32 billion due to
higher jetliner deliveries, ahead of a EUR17.63 billion consensus
estimate provided by FactSet.
NET INCOME FORECAST: Net profit surged to 1.16 billion euros
($1.29 billion) from EUR213 million in the quarter a year earlier,
slightly ahead of a EUR1.11 billion consensus estimate provided by
FactSet.
WHAT WE WATCHED:
-STRONG 2Q, AS EXPECTED: Airbus' net profit rose more than
fivefold during the quarter, driven by an increase in deliveries.
Airbus is on track to become the largest plane maker by deliveries
this year for the first time since 2011. It overtook Boeing in the
first half, with 389 planes shipped compared with the U.S.
company's 239. Its top-selling A320 family planes accounted for a
majority of the deliveries. The European plane maker stuck to its
2019 guidance, which includes the delivery of 880 to 890 commercial
aircraft this year.
-FCF IN FOCUS: Airbus suffered about EUR3.98 billion in cash
outflow before mergers and acquisitions and customer financing in
the first six months. However, it still expects to generate around
EUR4 billion in free cash flow by year end as Airbus typically
generates most of its FCF during the last quarter as it recovers
from delayed plane handovers.
-PRODUCTION DELAYS: Airbus warned that deliveries would remain
challenging for the rest of the year. The company has been
struggling with delays due partly to issues at its Hamburg plant,
which slowed production during the first half of the year.
Write to Olivia Bugault at olivia.bugault@dowjones.com
(END) Dow Jones Newswires
July 31, 2019 08:46 ET (12:46 GMT)
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