Airbus Profits Surge as it Backs 2019 View

   By Olivia Bugault 
 

Airbus SE (AIR.FR) said Wednesday that second-quarter net profit skyrocketed and maintained its full-year guidance.

The European plane maker said its closely watched adjusted earnings before interest and taxes rose by 72% to EUR1.98 billion, mainly driven by an increase in production of A320 jets, progress of the A350 XWB program and favorable currency effects.

Net profit surged more than four-fold to 1.16 billion euros ($1.29 billion), compared with EUR213 million in the quarter a year earlier, in part reflecting higher EBIT and lower tax rate.

Revenue was up 23% to EUR18.32 billion due to higher jetliner deliveries.

For the first half of the year, Airbus delivered 389 aircraft, compared with 303 in the year-prior period.

The company maintained its 2019 guidance, which includes the delivery target of 880-890 commercial aircraft.

Airbus said it suffered about EUR3.98 billion in cash outflow before mergers & acquisitions and customer financing in the first six months against a target of delivering around EUR4 billion in free cash flow by year end. Airbus typically generates most of its free cash flow during the last quarter as it recovers from delayed plane handovers.

"The half-year financial performance mainly reflects the ramp-up in production of A320 Family aircraft and transition to the more efficient NEO version, as well as further progress

on the A350 financial performance," Airbus Chief Executive Officer Guillaume Faury said, as the A350 program is on track to reach its breakeven target for the year.

Airbus also said that it's studying different options to increase the share of its A321 jets in the current A320 family production capacity.

Write to Olivia Bugault at [e-mail]

(END) Dow Jones Newswires

July 31, 2019 01:29 ET (05:29 GMT)

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