Thursday, 20 September, 2018

Airbus 2017 profits better than expected

Airbus 2017 profits better than expected Airbus 2017 profits better than expected
Nellie Chapman | 16 February, 2018, 08:24

The stock was also the top performer on France's benchmark CAC-40 index.

Airbus said yesterday that record deliveries, windfall gains from divestments and favorable exchange rates enabled profits to lift off a year ago, even though it booked a "substantial" new charge on its troubled A400M military transporter plane.

Given the "strength of our 2017 achievements" Airbus would propose lifting its dividend to $1.86 per share for 2017 from $1.

In October, Airbus' defence unit froze capital spending and urged staff to take "drastic measures" to save cash to avoid missing targets, according to an internal posting. The companies commercial aircraft division has been dogged by delays due to problems with the new engines for its Airbus A320neo family of single-aisle airliners, it's best selling product. And it acknowledged more struggles with engines supplied by Pratt & Whitney for the A320neo plane.

The charge for the new troop carrier comes a week after Airbus reached a provisional agreement with seven European Nato nations over further delays in deliveries.

Looking ahead to 2018, Airbus said it expects to deliver about 800 commercial aircraft.

"This certainly ain't pretty but we are making good progress overall", Enders told analysts.

However, Airbus took a €117 million fourth-quarter charge following a settlement with German prosecutors over a corruption case linked to a fighter sale to Austria, including some €35 million of ongoing legal costs.

Airbus said on Thursday it had now reached agreement allowing the export funding to resume on a case-by-case basis.

Tom Enders, the Airbus chief executive, said that the deal would "significantly reduce the remaining programme risks".

Airbus said in a note with its accounts that it was co-operating closely with US authorities in coordination with Britain's Serious Fraud Office and France's PNF financial police, which are investigating allegations of fraud, bribery and corruption in the group's civil aircraft activities.