CEO Austin Russell talks about the company’s new manufacturing deals on “Craman Countdown”
- Airbus announced a special dividend after its 2023 results improved, driven by increased demand for jetliners, despite a $215 million cost from its space business.
- The commercial aircraft maker is benefiting from a surge in orders and building up cash reserves compared to rival Boeing Co., which is facing debt problems.
- The stock fell slightly due to cautious financial forecasts for 2024 and the lack of updates on a broader share buyback.
european airbus announced a special dividend on Thursday after its 2023 results improved despite a rebound in demand for jetliners and a new $215 million in its troubled space business. Announced.
The world’s largest commercial aircraft manufacturer said core adjusted operating profit rose 4% to 5.8 billion euros on revenue up 11% to 65.4 billion euros, with core profit expected to reach 6.5 billion to 7.0 billion euros in 2024. He said he expected it to be worth 100 million euros.
Adjusted profit for the fourth quarter was slightly below market expectations of 2.21 billion euros compiled by the company.
United Airlines talks to Boeing rival Airbus over possible purchase of additional jets: report
Airbus is riding a wave of orders from airlines grappling with rebound High demand for travel The company was able to build up cash reserves during the pandemic, in contrast to its U.S. rival Boeing, which has struggled with debt amid a series of crises.
The Airbus logo is seen at Millipol Paris, a global exhibition dedicated to the safety and security of the homeland, held in Villepinte, near Paris, France, on November 15, 2023. (Reuters/Sarah Maysonnier/File photo)
Airbus proposed a unchanged regular dividend of 1.8 euros per share, as net cash exceeded the 10 billion euro threshold previously identified as a potential trigger for further cash returns to shareholders. Added a special dividend of 1 euro per share.
But the stock edged lower in early trading, with some analysts pointing to cautious financial forecasts for 2024 and a lack of updated information on broader share buybacks.
Investors are pushing Airbus to buy back its own shares as the company widens its lead over Boeing in the single-aisle jet market.
Chief Financial Officer Thomas Toepfer said Airbus acted quickly and chose the special dividend to demonstrate that it is sticking to its cash distribution commitment.
Airbus expects to deliver around 800 aircraft in 2024, but announced it will further delay the entry into service of its single-aisle jet A321XLR from the second quarter to the third quarter. The first customer aircraft he entered final assembly in December.
The company’s forecast does not result in further disruption to strained global supply chains or the global economy.
Some analysts see the outlook as cautious, even as Airbus and others continue to grapple with supply constraints.
Bernstein analysts said in a note: “We believe the minimum level investors are looking for is 800 (deliveries), and we expected an EBIT target of 7 billion euros.”
production target
The space division’s costs took the division’s total write-downs to €600 million last year, with Reuters reporting a day later that CEO Guillaume Faury said unexpectedly high costs in the business were “unacceptable”. It was reported that the employees had been informed.
The accusations caused profits in the defense and space division to fall by 40% to 229 million euros, while profits in the helicopter division increased by 15%.
Emirates buys 15 Airbus jets to rescue from engine rows
Airbus is another European company that faces fierce competition from Europe. us launcher and a new generation of low-cost satellites.
But in a letter last month, Mr. Foley told staff that Airbus is better off doing well in defense and space than not having a presence in those areas.
He said Thursday that Airbus will continue to monitor exposures in space.
Mr. Foley also said Airbus is “on track to meet our key production target of 75 single-aisle aircraft per month” in 2026, which is central to Airbus’ industrial plans in the busiest regions of the market. He said he remains confident in his goal of achieving this goal. .
But some suppliers remain conservative, with Airbus telling Reuters it is producing about 50 planes a month, compared to a production plan of 58 planes by the end of 2023.
