ATW Daily News

EADS second-quarter profit up 76%; Airbus targets 300 gross orders

Wednesday July 29, 2009

Airbus parent EADS reported second-quarter net income of €208 million ($296.1 million), a 76% increase over a €118 million profit in the year-ago period, and noted that "the negative [macroeconomic] trend. . .stopped or slightly reversed recently."

CEO Louis Gallois credited "disciplined financial management" for the improved result, adding that the company is "sticking to our priorities" that include "protecting cash [and] managing the order book and deliveries." He reiterated that Airbus's 2009 deliveries would reach "at least" the 483 aircraft delivered last year and told analysts and reporters that "the market [for commercial aircraft] is still alive."

He added that the "level of cancellation is very limited" and said production rates will be maintained at "the current level" through the remainder of 2009 and into the first part of 2010 owing to a "robust" backlog. He conceded that making projections beyond mid-2010 are difficult in the current economic environment.

"There is no clear sign of stabilization since traffic and yield deterioration as well as funding conditions are challenging airlines' financials," EADS said in a statement. "EADS expects Airbus to capture 300 new gross orders in 2009, even if that goal is challenging."

EADS' second-quarter revenue rose 19% to €11.73 billion while EBIT jumped 69% to €656 million. Airbus's EBIT improved more than fivefold to €430 million on a 20% heightening of revenue to €8.07 billion. The big gain is somewhat misleading because, as EADS noted, Airbus's 2008 second-quarter EBIT "was heavily burdened by a charge for the A380 program and negative foreign exchange rate one-time effects."

EADS' half-year net income actually decreased 6% to €378 million while revenue grew 2% to €20.2 billion. Airbus's six-month EBIT lowered 27% to €519 million on a 1% dip in revenue to €13.95 billion.

by Aaron Karp

Other headlines: