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 April 20, 2015

News: Sale of U.S. arms fuels the wars of Arab states - As the Middle East descends into proxy wars, sectarian conflicts and battles against terrorist networks, countries in the region that have stockpiled American military hardware are now actually using it and wanting more. U.S. spending $1 billion to reassure European allies - From Army rotations...
 
 

News Briefs April 20, 2015

Last two Raiders give congressional medal to Ohio museum The last two ìDoolittle Tokyo Raidersî have presented their Congressional Gold Medal for permanent display at a museum in southwest Ohio. The medal arrived at the National Museum of the U.S. Air Force near Dayton in a ceremonial B-25 bomber flight. The medal was awarded by...
 
 
Northrop Grumman photograph

Space Solar Power Initiative established by Northrop Grumman, Caltech

Northrop Grumman photograph Northrop Grumman’s Joseph Ensor (left) and Caltech’s Ares Rosakis (right) shake hands as part of the recent SSPI commemoration event held at the California Institute of Technology, Pasade...
 

 
Navy photograph

Triton UAS conducts first flight with search radar

Navy photograph The MQ-4C Triton unmanned aircraft takes off from Naval Air Station Patuxent River, Md., April 16, to conduct its first flight from the naval base. The aircraft began sensor testing on April 18 and flew with its...
 
 

UTC introduces active side-sticks to large commercial aviation

UTC Aerospace Systems is introducing the world’s first active side-stick controller for large commercial aircraft. UTC Aerospace Systems is a unit of United Technologies Corp. UTC Aerospace Systems’ Actuation & Propeller business unit is supplying the active side-sticks for the cockpit of the new Irkut MC-21 single aisle aircraft. The MC-21 family of aircraft will...
 
 

Boeing presents flight test 787 Dreamliner to air, space museum

Boeing, elected and community leaders joined together April 17 to celebrate the permanent display of one of the original 787-8 Dreamliner flight test airplanes at the Pima Air & Space Museum. “Boeing has a strong presence in Arizona and is proud to share this important achievement in aviation history with the community, our employees and...
 




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>