Airbus cuts delivery goal on Hamburg plant snags

This post was originally published on this site

https://i-invdn-com.akamaized.net/trkd-images/LYNXMPEF9T0AZ_L.jpg

PARIS/HONG KONG (Reuters) – Airbus (PA:) cut its full-year delivery goal for commercial jets on Wednesday, as the planemaker struggles with production delays at a newly expanded German plant.

Europe’s largest aerospace group expects to deliver “around 860” airliners in 2019 instead of the 880-890 previously targeted, the company said as it posted 1.6 billion euros ($1.78 billion) in adjusted operating income for the third quarter.

The revised delivery numbers and outlook “reflect the underlying actions to secure a more efficient delivery flow in the next years”, Chief Executive Guillaume Faury said in the company statement.

The adjusted operating profit figure rose 2% year-on-year as revenue fell 1% to 15.3 billion euros for July-September and net income rose 3% to 989 million euros. The group also trimmed its 2019 free cash flow goal to reflect the revised delivery outlook.

Airbus has been wrestling with delays to its A321 jets at its plant in Hamburg, Germany for around two years, and a top leasing industry executive said earlier on Wednesday that the situation showed no sign of improving.

John Plueger, chief executive of Air Lease Corp (N:), told the Airfinance Journal Asia Pacific 2019 conference that problems at the Hamburg plant were “getting worse, not better”.

Asked about Plueger’s comments, an Airbus spokesman said: “We are agreeing next deliveries with our customers.” The discussions with customers were confidential, he added.

To reach its revised 2019 goal, Airbus must still hand over 289 planes in the final quarter, a little short of its record 297 deliveries in the same period last year.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add Comment