Airbus's 3Q Cash, 4Q Guidance Reassure, But Crisis Isn't Over -- Earnings Review
By Olivia Bugault
Airbus SE released third-quarter results on Thursday morning.
Here's what you need to know:
SALES: Revenue for the third quarter fell 27% to 11.21 billion
euros ($13.17 billion), slightly missing analysts' expectations of
EUR11.57 billion, according to a FactSet consensus estimate.
EBIT: Adjusted earnings before interest and taxes fell 49% to
EUR820 million, beating analysts' expectations of EUR710 million,
according to FactSet. Reported EBIT swung to a loss as Airbus
booked a restructuring provision of EUR1.2 billion.
WHAT WE WATCHED:
-CASH TARGET: The aerospace giant's free cash flow before
M&A and customer financing was better than expected at EUR600
million. Airbus set a new goal for its fourth quarter. It now
expects free cash flow to be at least neutral for the last three
months of the year. The recent confinement measures announced in
Europe to stop the spread of the virus shouldn't affect this
target, Airbus Chief Executive Guillaume Faury said.
-PRODUCTION RAMP-UP: Mr. Faury confirmed that the production
rate of its A320-family jets should remain at 40 per month until at
least next summer and then increase in the second half of 2021 as
Airbus has sufficient demand for its best-selling narrowbody jets.
However, Mr. Faury said that widebody production shouldn't increase
next year as recovery will take longer for international
-NO DELIVERY GUIDANCE: Airbus said that it still can't provide
guidance on deliveries for the year due to the coronavirus
pandemic. "Despite the slower air travel recovery, we converged
commercial aircraft production and deliveries in the third
quarter," Mr. Faury said. The number of planes in inventory is down
to roughly 135 from 145.
Write to Olivia Bugault at firstname.lastname@example.org
(END) Dow Jones Newswires
October 29, 2020 06:33 ET (10:33 GMT)
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