Airbus Shares Rise After Management Backs Production, Dividend Goals

By Cristina Roca

Shares in Airbus SE traded higher Friday after the plane maker backed its delivery targets despite the challenges it faces in its supply chain, and said it was committed to growing shareholder returns.

At 0833 GMT, shares traded 3.3% higher at EUR95.39.

Management struck an optimistic tone at the company's capital markets day on Friday. Chief Executive Officer Guillaume Faury backed the company's key target of producing 75 narrowbody planes a month by 2025, from a projected rate of about 50 this year. The company's efforts to ramp up its production rate have come under close scrutiny recently as it contends with shortages in parts and engines.

Management also stressed its intention to increase returns to shareholders. Dividends will remain Airbus's preferred way of returning cash, and should be toward the high end of a targeted 30%-40% payout ratio, Chief Financial Officer Dominik Asam said.

Write to Cristina Roca at [e-mail]

(END) Dow Jones Newswires

September 23, 2022 04:59 ET (08:59 GMT)

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