Airbus Books a Net Loss in 3Q Amid Coronavirus Woes

   By Olivia Bugault 
 

Airbus SE on Thursday reported a net loss in its third quarter and booked a restructuring provision in the face of a persistent coronavirus pandemic that has been particularly hard on the aviation industry.

The European plane maker had a loss of 767 million euros ($901 million) in the quarter, compared with a net profit of EUR989 million a year earlier, while revenue fell 27% to EUR11.21 billion.

Analysts expected sales to come in at EUR11.57 billion, according to a consensus estimate provided by FactSet.

"Despite the slower air travel recovery than anticipated, we converged commercial aircraft production and deliveries in the third quarter and we stopped cash consumption in line with our ambition," Airbus Chief Executive Guillaume Faury said.

Airbus's more closely watched adjusted earnings before interest and taxes fell 49% to EUR820 million. Reported Ebit swung to a loss of EUR626 million as Airbus booked a restructuring provision of EUR1.2 billion, it said.

Airbus reported free cash flow before mergers and acquisitions and customer financing of EUR600 million in its third quarter.

The Toulouse, France-based company said it still won't issue a new Ebit or delivery guidance for the year due to the continued impact of the Covid-19 crisis on its activities.

However, Airbus targets at least breakeven free cash flow before M&A and customer financing in its fourth quarter, reckoning no further disruption will hit its business during the period.

Write to Olivia Bugault at [e-mail]

(END) Dow Jones Newswires

October 29, 2020 02:14 ET (06:14 GMT)

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