Airbus reported significantly lower second-quarter net profit as increased charges in its space systems division and reduced commercial aircraft deliveries overshadowed a rise in revenue.
The Toulouse-based company said its April-June period’s net profit had dropped 78 per cent to €230 million ($248.7 million).
Its earnings before interest and taxes fell 56 per cent to €814 million during the quarter.
The company incurred a charge of €989 million for forward losses in its space business, exceeding the estimated €900 million indicated in last month's profit warning.
Despite lower-than-expected income, Airbus stock jumped as it predicted an optimistic outlook for 2024, rising 2.58 per cent to trade at $133.58 at 10.15pm UAE time, which gave the company a market cap of $106.67 billion.
The plane maker aims to achieve about 770 commercial deliveries this year. It also forecast adjusted profit before interest and tax of €5.5 billion for this year.
It expects its free cash flow, before customer financing, to reach about €3.5 billion this year.
The company based its 2024 outlook on the assumption that there will be no further disruptions to the global economy, air traffic, supply chain, its own internal operations, or its ability to deliver products and services.
The financial performance reflects “significant charges in our space business”, said Guillaume Faury, chief executive of Airbus.
“We are addressing the root causes of these issues … in commercial aircraft, we are focused on deliveries and preparing the next steps of the ramp-up, while addressing specific supply chain challenges and protecting the sourcing of key work packages."
The company’s revenue in the June quarter surged nearly 1 per cent to more than €15.9 billion.
And its gross commercial aircraft orders totalled 327 in the January-June period, compared with 1,080 in the prior year period.
The company delivered 323 commercial aircraft during the period, up 2.2 per cent, comprising 28 A220s, 261 A320 family craft, 13 A330s and 21 A350s.
Its order backlog stood at 8,585 commercial aircraft at the end of last month.
Airbus Helicopters registered 233 net orders in the first six months of this year, from 131 units in the same period last year.
The defence and space division’s order value surged 1.6 per cent annually to €6.1 billion in the same period.
Last week, Saudi Arabia's budget airline Flynas signed an agreement for up to 160 Airbus Neo jets, which includes options for 70 aircraft, at the Farnborough International Airshow in the UK.
It boosted the European aircraft maker's total to 164 aircraft orders and commitments, allowing it to pull ahead of its US competitor Boeing, which took 96 orders and commitments plus 22 options during the event.
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
What is graphene?
Graphene is a single layer of carbon atoms arranged like honeycomb.
It was discovered in 2004, when Russian-born Manchester scientists Andrei Geim and Kostya Novoselov were "playing about" with sticky tape and graphite - the material used as "lead" in pencils.
Placing the tape on the graphite and peeling it, they managed to rip off thin flakes of carbon. In the beginning they got flakes consisting of many layers of graphene. But as they repeated the process many times, the flakes got thinner.
By separating the graphite fragments repeatedly, they managed to create flakes that were just one atom thick. Their experiment had led to graphene being isolated for the very first time.
At the time, many believed it was impossible for such thin crystalline materials to be stable. But examined under a microscope, the material remained stable, and when tested was found to have incredible properties.
It is many times times stronger than steel, yet incredibly lightweight and flexible. It is electrically and thermally conductive but also transparent. The world's first 2D material, it is one million times thinner than the diameter of a single human hair.
But the 'sticky tape' method would not work on an industrial scale. Since then, scientists have been working on manufacturing graphene, to make use of its incredible properties.
In 2010, Geim and Novoselov were awarded the Nobel Prize for Physics. Their discovery meant physicists could study a new class of two-dimensional materials with unique properties.
Tips to keep your car cool
- Place a sun reflector in your windshield when not driving
- Park in shaded or covered areas
- Add tint to windows
- Wrap your car to change the exterior colour
- Pick light interiors - choose colours such as beige and cream for seats and dashboard furniture
- Avoid leather interiors as these absorb more heat
The Buckingham Murders
Starring: Kareena Kapoor Khan, Ash Tandon, Prabhleen Sandhu
Director: Hansal Mehta
Rating: 4 / 5
Padmaavat
Director: Sanjay Leela Bhansali
Starring: Ranveer Singh, Deepika Padukone, Shahid Kapoor, Jim Sarbh
3.5/5
Biog
Mr Kandhari is legally authorised to conduct marriages in the gurdwara
He has officiated weddings of Sikhs and people of different faiths from Malaysia, Sri Lanka, Russia, the US and Canada
Father of two sons, grandfather of six
Plays golf once a week
Enjoys trying new holiday destinations with his wife and family
Walks for an hour every morning
Completed a Bachelor of Commerce degree in Loyola College, Chennai, India
2019 is a milestone because he completes 50 years in business
The bio
Who inspires you?
I am in awe of the remarkable women in the Arab region, both big and small, pushing boundaries and becoming role models for generations. Emily Nasrallah was a writer, journalist, teacher and women’s rights activist
How do you relax?
Yoga relaxes me and helps me relieve tension, especially now when we’re practically chained to laptops and desks. I enjoy learning more about music and the history of famous music bands and genres.
What is favourite book?
The Perks of Being a Wallflower - I think I've read it more than 7 times
What is your favourite Arabic film?
Hala2 Lawen (Translation: Where Do We Go Now?) by Nadine Labaki
What is favourite English film?
Mamma Mia
Best piece of advice to someone looking for a career at Google?
If you’re interested in a career at Google, deep dive into the different career paths and pinpoint the space you want to join. When you know your space, you’re likely to identify the skills you need to develop.
