Airbus Books 2019 Loss, Plans A320 Production Ramp-Up -- Earnings Review

By Olivia Bugault

Airbus SE released its fourth-quarter and 2019 results on Thursday morning. Here's what you need to know:

SALES: Revenue for the fourth quarter increased 4% to 24.31 billion euros ($26.50 billion), beating analysts' expectations of EUR23.33 billion. Revenue in 2019 rose 11% to EUR70.48 billion.

NET LOSS: The European plane maker swung to a loss in 2019 as it reported a EUR3.6 billion penalty from a corruption probe settlement and EUR1.2 billion charges from its A400M program.

WHAT WE WATCHED:

-GOOD 2019: Revenue and closely-watched adjusted earnings before interest and taxes both grew in 2019, a solid performance despite the net loss partly caused by the expected penalty payments that settle allegations of bribery in the U.S., U.K. and France.

-DELIVERY GUIDANCE: Airbus expects to deliver around 880 commercial aircraft this year, 17 more than in 2019. The European plane maker's "2020 delivery guidance of 880 jets is 40 aircraft lower than [we] expected," Citi said.

-A320 PRODUCTION RAMP-UP: Airbus plans to increase the production of its bestselling A320neo jets to as much as 67 a month by 2023 from its current goal of 63 a month in 2021. The ramp-up comes as Boeing's 737 MAX--which directly competes with the A320neo--is still grounded worldwide.

- CORONAVIRUS: The aerospace giant said it has lost one week of production at its A320 final assembly line at Tianjin in China due to the coronavirus, but expects to recover from the loss this year. Currently, the plant produces roughly six planes a month.

Write to Olivia Bugault at [e-mail]

(END) Dow Jones Newswires

February 13, 2020 06:43 ET (11:43 GMT)

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