Airbus 1Q Earnings Beat Forecasts; Will Boost A320 Production Rates
May 04 2022 - 12:41PM
Dow Jones News
By Mauro Orru
Airbus SE posted earnings ahead of expectations for the first
quarter despite the negative impact of sanctions against Russia,
and said it would boost future production rates for its A320, the
single-aisle rival to Boeing Co.'s 737 MAX.
The European plane maker said Wednesday that adjusted earnings
before interest and taxes--a key profitability metric--climbed to
1.26 billion euros ($1.33 billion) from EUR694 million in the first
quarter last year. However, sanctions against Russia shaved off
EUR200 million in earnings.
Standard net profit jumped to EUR1.22 billion from EUR362
million, while free cash flow before mergers and acquisitions and
customer financing--another closely watched metric for the
company--fell to EUR213 million from EUR1.20 billion. Revenue
increased to EUR12 billion from EUR10.46 billion.
Analysts had forecasts adjusted EBIT of EUR719 million, net
profit of EUR460 million and free cash flow before mergers and
acquisitions and customer financing of EUR124 million, according to
a company-compiled consensus. Revenue was expected to come in at
EUR12.05 billion.
"Our 2022 guidance is unchanged, even though the risk profile
for the rest of the year has become more challenging due to the
complex geopolitical and economic environment," Airbus Chief
Executive Guillaume Faury said.
"Looking beyond 2022, we see continuing strong growth in
commercial aircraft demand driven by the A320 Family. As a result
we are now working with our industry partners to increase A320
Family production rates further to 75 aircraft a month in 2025," he
added.
For 2022, Airbus continues to target 720 commercial aircraft
deliveries, adjusted EBIT of EUR5.5 billion and free cash flow
before mergers and acquisitions and customer financing of EUR3.5
billion.
Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94
(END) Dow Jones Newswires
May 04, 2022 12:26 ET (16:26 GMT)
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