Airbus shares fly higher as profits grow despite ongoing order backlog
Airbus’s shares rose almost five per cent today after it posted higher-than-expected third quarter earnings.
Net profit at Europe’s largest aerospace group increased by 210 per cent year-on-year to €953m (£845.2m), while revenue for the quarter was up 20 per cent to €15.4bn.
Earnings before interest and taxes came in at €1.58bn, higher than the €1.44bn that analysts had been expecting.
Airbus has had issues with backlogs of 7,300 orders, and has struggled with delays to deliveries due to supplier issues, particularly with Rolls-Royce engines for its A320neo single-aisle plane.
The plane manufacturer noted that this has meant that the full-year 2018 target of delivering 800 planes is “a greater stretch” and that “a lot remains to be done before the end of the year to fulfill commitments”.
The rise in profits mainly reflected progress in delivering the A320neo and the A350 XWB, a long-range commercial jet.
Airbus's military transport jet, the A400M, has faced delays and technological issues, but chief executive Tom Enders said: "We are progressing with the military capabilities, deliveries and retrofit. The contract amendment discussions are advancing, but a bit slower than planned."
“The nine-month results mainly reflect the good performance on the A350 and the aircraft delivery profile," he added. "Even though we delivered more aircraft than a year earlier, we still have a lot to do to meet our commitments.
“Our primary operational focus remains on commercial aircraft deliveries and securing the A320neo ramp-up.”
Enders will be leaving his post in April 2019, having faced a controversial year with a number of corruption investigations facing the company.
Enders will be replaced by the head of its commercial aircraft division, Guillaume Faury.