Business

November 15, 2013

Airbus parent reports higher third quarter profit

Greg Keller
Associated Press

Airbus parent company EADS said strong demand for its commercial aircraft helped its third-quarter profits increase by a hefty 45 percent.

But the European jet maker warned Nov. 13 that its free cash flow, a measure of cash generated by a business, would be negative 1.5 billion euros ($2 billion) this year because of its investment program into lifting production and development of programs such as the A350 long-range wide body, which is supposed to enter service in the second half of next year.

Previously, the company had said its free cash flow would break even this year, compared with positive 1.5 billion euros last year.

The company said in a statement that net profit for the July-September quarter rose to 436 million euros, up from 301 million euros a year earlier.

EADS, which next year is adopting the ìAirbusî name for its overall corporate identity, said its free cash flow is being squeezed as some of its government military customers cut spending amid tightened budgets, as well as unexpected additional costs tied to the A350 and other programs.

Speaking to reporters, Chief Financial Officer Harold Wilhelm said ìthere’s still a long way to goî on the A350 with some higher costs, but that the program remains on track for entry into service late next year.

Wilhelm also said the free cash flow situation will improve before the end of this year.

EADS still expects its operating profit before one-offs, its preferred earnings gauge, to reach 3.5 billion euros this year, up from 3 billion euros in 2012.

U.S. rival Boeing reclaimed the title of world’s largest airplane maker from Airbus last year, delivering 601 planes in 2012 to Airbus’ 588 deliveries. But last month Airbus secured its first-ever order from Japan Airlines, a deal that undermines Boeing’s long-held dominance of the Japanese aviation market.

As of the end of October, Boeing had delivered 530 aircraft to Airbus’ 504.

Airbus has the upper hand on aircraft sales, though, booking 1,265 orders through the end of October to Boeing’s 1,102. It expects to deliver 620 aircraft this year, including 25 of its superjumbo A380s.

In a recent interview with the Associated Press, Airbus Chief Executive Fabrice Bregier said Airbus will regain the lead on deliveries around 2017 or 2018, when the company ramps up production of the A350.

The contest between the two aircraft makers is about more than bragging rights. Boeing forecasts that over the next 20 years the global demand for new airplanes will exceed 35,000 aircraft valued at $4.8 trillion.

The A380, which seats well over 500 people in a typical cabin configuration, has seen little demand this year, with Airbus booking no new orders so far. The company says the aircraft remains a priority, and is still promising to sell 25 of the jets by the end of this year.




All of this week's top headlines to your email every Friday.


 
 

 

Headlines August 28, 2014

News: After F-15 jet crash in Virginia, rescue helicopters search for pilot - Helicopters are searching for an Air National Guard pilot after his F-15 jet crashed in the mountains of Virginia this morning, military officials said.   Business: U.S. Air Force 3DELRR contract expected soon - The U.S. Air Force could award the contract for its...
 
 

News Briefs August 28, 2014

Russian directing new offensive in Ukraine The Obama administration believes Russia is leading a new military counteroffensive in Ukraine. U.S. State Department spokeswoman Jen Psaki says Russia has sent additional columns of tanks and armored vehicles into its neighbor’s territory. She says the incursions suggest a ìRussian-directed counteroffensive is likely underway in the contested e...
 
 
LM-C5

Double Deuce

A U.S. Air Force crew ferried the 22nd C-5M Super Galaxy from the Lockheed Martin facilities in Marietta, Ga., Aug. 25. Aircraft 86-0011 was ferried by a crew led by Maj. Gen. Dwyer L. Dennis, Director, Global Reach Programs, O...
 

 
Northrop Grumman photograph

First ever RQ-4 Global Hawk hits 100th flight on NASA mission

Northrop Grumman photograph A historical look at the first Global Hawk (AV1) during its maiden flight over Edwards Air Force Base, Calif., on Feb. 28, 1998. AV1 has made history again with its 100th flight in support of NASA en...
 
 

Northrop Grumman’s CIRCM system completes U.S. Army flight testing

Northrop Grumman’s Common Infrared Countermeasures system recently completed another round of U.S. Army testing by demonstrating its capabilities on a UH-60M Black Hawk helicopter. The flight test was conducted at Redstone Arsenal in Huntsville, Ala., by the Redstone Test Center. The Northrop Grumman CIRCM system was subjected to rigorous conditions over a six-week period, after...
 
 
NASA photograph by David Olive

NASA completes successful battery of tests on composite cryotank

https://www.youtube.com/embed/qkGI6JeNY0E?enablejsapi=1&rel=0 NASA photograph by David Olive One of the largest composite cryotanks ever built recently completed a battery of tests at NASA’s Marshall Space Flight Cen...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>