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 October 22, 2014

News: Northrop challenges 3DELRR contract award - Northrop Grumman has formally issued a protest against the US Air Force’s decision to award its next-generation ground based radar to competitor Raytheon.   Business: Defense firms prefer GOP, but spread campaign cash between political parties - For every campaign contribution from a major arms manufacturer to a Republican candidate...
 
 

News Briefs October 22, 2014

Military converges on scene of Kansas jet crash Military personnel are investigating at the site in southeast Kansas where an Oklahoma Air National Guard fighter jet crashed after a midair collision with another one during a training exercise. The F-16 crashed Oct. 20 in a pasture about three miles northeast of Moline, an Elk County...
 
 
Courtesy photograph

Upgrades ‘new normal’ for armor in uncertain budget environment

Courtesy photograph The current Paladin is severely under-powered and overweight so its speed of cross-country mobility is pretty restricted. The Paladin Integrated Management program is designed to address a number of these we...
 

 

ISR: A critical capability for 21st century warfare

The progressive adaptations and breakthroughs made in the intelligence, surveillance and reconnaissance arena have changed the way wars are fought, and the way commanders think about the battlespace. “Whether we have airmen exploiting full motion video data or serving downrange in the (Central Command) area of responsibility, these individuals make up an enterprise of 30,000...
 
 

Lockheed Martin teams with Roketsan of Turkey on new standoff missile for F-35

Roketsan and Lockheed Martin signed a teaming agreement Oct. 22 for collaboration on the SOM-J, a new generation air-to-surface Standoff Cruise Missile for the F-35 Lightning II. The SOM system is an autonomous, long-range, low-observable, all-weather, precision air-to-surface cruise missile. The SOM-J variant is tailored for internal carriage on the F-35 aircraft. The companies will...
 
 

Army Operating Concept expands definition of combined arms

The Army Operating Concept, published Oct. 7, expands the idea of joint combined-arms operations to include intergovernmental and special operations capabilities, said Gen. Herbert R. McMaster Jr. The new concept includes prevention and shaping operations at the strategic level across domains that include maritime, air, space and cyberspace, he said. It’s a “shift in emphasis,”...
 




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>