Airbus reports 22% drop in profit to September
02-11-24
Airbus has reported a net profit of €1.808 billion for the first nine months of 2024, down 22% compared to the same period last year. This decline was mainly attributable to expenses incurred in its space division during the first half of the year.
The company's adjusted operating profit also experienced a 23% drop to €2,798 million. However, revenue rose by 5% to 44,514 million euros. This increase in revenue reflects a strong performance in commercial aircraft deliveries and in the helicopter segment.
Guillaume Faury, Airbus CEO, emphasized that despite the challenges faced in the space division, the results achieved through September demonstrate the company's resilience and operational efficiency in its core business areas.
Performance by division
Commercial Aircraft: The company delivered 500 commercial aircraft in the first nine months of the year, an increase of 7% over the same period in 2023. This increase is due to growing demand for fuel-efficient models and the gradual recovery of global air traffic.
Helicopters: The Helicopters segment reported a 10% increase in revenues, driven by the delivery of 200 units and increased demand in the civil and government sectors.
Defense and Space: This division faced significant challenges, with a 15% decline in revenues due to delays in key programs and additional expenses incurred on space projects during the first half of the year.
As of September 30, 2024, Airbus' net cash position stood at €7,163 million, down 26% year-on-year. Free cash flow, after customer financing, was negative €845 million, reflecting investments made and challenges in the supply chain.
Airbus maintains an optimistic outlook for the last quarter of the year. The company assumes no further significant disruptions in the global economy, air traffic, the supply chain or its internal operations. Based on this assumption, Airbus expects to achieve the following targets by the end of 2024:
Commercial aircraft deliveries: 770 commercial aircraft are projected to be delivered, exceeding the 735 units delivered in 2023.
Adjusted operating profit: Adjusted operating profit is estimated to reach approximately €5.5 billion.
Free cash flow: The company forecasts free cash flow before customer financing of around €3.5 billion.
Despite positive results in the commercial aircraft and helicopter divisions, Airbus faces challenges in its Defense and Space division. The company has implemented measures to mitigate delays in key programs and control additional spending on space projects. In addition, Airbus continues to focus on strengthening its supply chain and improving operational efficiency to meet its annual targets.
In the global context, the aerospace industry continues to face uncertainties related to the world economy and geopolitical tensions. However, the gradual recovery of air traffic and the growing demand for fuel-efficient aircraft offer opportunities for sustained growth for Airbus in the near future.
The company is also investing in innovation and sustainability, developing new technologies and models that reduce carbon footprint and improve operational efficiency. These initiatives are aligned with global trends toward more sustainable aviation and with the expectations of customers and regulators.
In summary, although Airbus has faced challenges in 2024, especially in its space division, the company has demonstrated resilience and adaptability. With a strong order backlog and strategies focused on efficiency and sustainability, Airbus is well positioned to close the year with positive results and continue its growth trajectory in the aerospace sector.
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