Airbus' share price rises as it posts strong results and announces a €1bn share buyback

 
James Nickerson
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Airbus said it is on track to meet its full year guidance (Source: Getty)

Airbus has posted strong third quarter earnings, with a 42 per cent increase in net profits. Airbus' share price rose five per cent to €63.72 on the news.

The figures

Airbus reported revenues of €14.1bn (£10.1bn) in the three months to the end of September, up six per cent from €13.3bn for the same period year ago.

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Earnings before interest, tax and one-offs increased 12 per cent to €921m, from €821m a year ago.

Net income rose 42 per cent to €376m, from €264m for the same period a year ago.

The company took the opportunity of its results to spread the cheer to its shareholders, unveiling a €1bn share buyback programme.

Why it's interesting

The world's airlines have been on a shopping spree, and Airbus, one of Europe's largest aviation and defence manufacturers, has been one of the chief beneficiaries.

Read more: Airbus files patent for "stacked" passenger seats

By unit, commercial aircraft drove the vast majority of revenue, accounting for €10bn, while defence and space accounted for €2.85bn and helicopters brought in €1.47bn.

Meanwhile, increased revenue was "driven mainly by a favourable foreign exchange impact".

What Airbus said

Enders added:

The healthy commercial aircraft market, robustness of our backlog and supply chain capability allows us to raise the single-aisle production rate to 60 a month in mid-2019. We are strongly focused on programme execution given our key operational challenges with the A350 and A400M production ramp-ups and A320neo.

In short

Airbus posted strong results with a positive outlook as it announced a €1bn share buyback.

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