Airbus shares closed higher Thursday, after the European plane maker reported better-than-expected profits and also said there was an improvement in its deliveries bottleneck. CEO hails upbeat Farnborough air show and growing order book.
Airbus shares closed 4.50% higher at €109.62, Thursday. After climbing a couple of weeks ago, the stock has been little changed.
Airbus reported that its adjusted profits before tax and interest more than doubled in the first half of 2018, to €1.15 billion from €572 million in the same period of 2017. And, that stellar performance came even though the aerospace firm was still having problems with engine manufacturing delays during that period.
The delay was related to the Pratt & Whitney engines required for the A320neo jets that had been ordered. Much of that delay has been resolved now, however, paving the way for further improvement on the delivery front, in the second half of the year.
“The first half financials reflect the back-loaded deliveries due to A320neo engine shortages, while on the positive side there was a strong improvement on the A350 programme,” said Airbus CEO Tom Enders.
“A320neo aircraft deliveries picked up during the second quarter but challenges remain to meet our full year targets. Market demand remains strong for the expanded Airbus portfolio that now includes the A220 at the smaller end,” he added.
While Airbus achieved a good profit before costs, its net profit was less impressive. That figure slumped 55% to €496 million in H1 from €1.1 billion a year earlier.
However, countering that disappointment, the plane maker said that its A350 wide body jet series was proving popular as output of the aircraft is set to rise to 10 per month, while costs improve, too.
Consolidated H1 revenues, meanwhile, hit €14.9 billion, some 8% up from €13.7 billion achieved a year earlier. The Toulouse-based business added that it made 303 deliveries in H1 2018, marginally lower than the 306 deliveries achieved during the same period a year earlier.