Airbus Issues 2021 Guidance After Booking a Fourth-Quarter Profit

   By Olivia Bugault 
 

Airbus SE booked an unsurprising net loss for 2020 despite turning a profit in its fourth quarter and issued a guidance for 2021.

The European plane maker said Thursday its full-year net loss was 1.13 billion euros ($1.36 billion), compared with a loss of EUR1.36 billion in 2019 when it was hit by a EUR3.6 billion penalty related to a corruption settlement probe. For its fourth quarter, net profit came in at EUR1.55 billion.

The aerospace giant's closely watched adjusted earnings before interest and taxes fell 75% in 2020 to EUR1.71 billion. Revenues fell 29% to EUR49.91 billion.

Free cash flow before merger & acquisition and customer financing was roughly EUR4.9 billion in the fourth quarter and Airbus ended 2020 with a total outflow of EUR6.94 billion, it said.

The company, based in Toulouse, France, company issued guidance for 2021 assuming no further disruptions to the world economy and air traffic because of the coronavirus pandemic. On that basis, the company targets at least the same number of aircraft deliveries in 2021 than in 2020 and an adjusted EBIT of EUR2 billion or more. Airbus also targets at least breakeven free cash flow before M&A and customer financing at the end of the year.

The company won't propose a dividend for 2020, it said.

"Many uncertainties remain for our industry in 2021 as the pandemic continues to impact lives, economies and societies," Airbus's Chief Executive Officer Guillaume Faury said.

Write to Olivia Bugault at [e-mail]

(END) Dow Jones Newswires

February 18, 2021 01:18 ET (06:18 GMT)

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