Airbus core profit beats forecasts but delivery delays drain cash

Airbus Group on Thursday posted slightly higher than expected core profit and reaffirmed targets for the year, while warning of serious challenges for its A400M military plane and reporting a heavy drain on cash due to delayed jet deliveries.

Widely watched operating earnings before one-off items at Europe’s largest aerospace group fell 23 per cent to €501 million (Dh2.09 billion) as revenue gained 1 per cent to €12.183bn.

Analysts were predicting core operating earnings before one-off items of €494m on revenue of €11.94bn, according to a Reuters survey.

Airbus Group reported a heavier than expected seasonal outflow of cash, reaching €2.9bn, as problems with suppliers and other issues hold up jet deliveries. Industry sources said last week a queue of undelivered jets was hurting the company’s cashflow.

This year “turns out to be the challenging year we anticipated”, said the chief executive Tom Enders. “Overall, we expect a stable financial performance, but deliveries, cash and earnings will be heavily loaded towards the end of the year.”


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