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Airbus quarterly profit falls 21pc to US$796 million as revenue slips 1pc
FRENCH planemaker Airbus posted a year on year 21 per cent third quarter pre-tax profit decline to EUR731 million (US$796 million), drawn on revenues of EUR13.95 billion, down one per cent.
"For the remaining months of the year we remain totally focused on deliveries to achieve our earnings and cash guidance," said Airbus CEO Tom Enders.
Problems with suppliers have held back A350 deliveries, Airbus said. While "good progress" was made over the summer to bring down the level of outstanding work in the final assembly line of the A350, "difficulties remain in the supply chain".
The group has also been struggling to catch up on deliveries of its A320 Neo short-haul jet after they were held up by cooling and starting problems in its new Pratt & Whitney geared turbofan engine.
"Early teething problems with the Pratt & Whitney engine are now largely over," said Airbus, but added that "P&W is facing some industrial ramp-up challenges which puts more pressure on the backloading of the delivery profile."
In the third quarter, Airbus' commercial jets unit recorded a 26 per cent fall in profit in spite of a four per cent rise in revenue. Profits at its helicopter unit fell 29 per cent.
In July, Airbus announced EUR1.4 billion in charges to cover engine problems on its A400M military transport. It brought to more than EUR5 billion the charges booked by Airbus on the programme in less than a decade.
Free cash flow excluding customer financing and receipts from disposals should also match last year's figure, he reiterated, while an overall delivery target of more than 650 aircraft remains within reach and could extend to 670 jets.
Key customer Qatar Airways refused to take early Pratt-powered examples of the Neo because of cooling problems, and the engines remain in short supply even after deglitching.
"For the remaining months of the year we remain totally focused on deliveries to achieve our earnings and cash guidance," said Airbus CEO Tom Enders.
Problems with suppliers have held back A350 deliveries, Airbus said. While "good progress" was made over the summer to bring down the level of outstanding work in the final assembly line of the A350, "difficulties remain in the supply chain".
The group has also been struggling to catch up on deliveries of its A320 Neo short-haul jet after they were held up by cooling and starting problems in its new Pratt & Whitney geared turbofan engine.
"Early teething problems with the Pratt & Whitney engine are now largely over," said Airbus, but added that "P&W is facing some industrial ramp-up challenges which puts more pressure on the backloading of the delivery profile."
In the third quarter, Airbus' commercial jets unit recorded a 26 per cent fall in profit in spite of a four per cent rise in revenue. Profits at its helicopter unit fell 29 per cent.
In July, Airbus announced EUR1.4 billion in charges to cover engine problems on its A400M military transport. It brought to more than EUR5 billion the charges booked by Airbus on the programme in less than a decade.
Free cash flow excluding customer financing and receipts from disposals should also match last year's figure, he reiterated, while an overall delivery target of more than 650 aircraft remains within reach and could extend to 670 jets.
Key customer Qatar Airways refused to take early Pratt-powered examples of the Neo because of cooling problems, and the engines remain in short supply even after deglitching.
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