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Airbus Q3 net income surges

Staff Writer |
Airbus Group reported that its third-quarter net income attributable to equity owners of the parent surged to 348 million euros from 50 million euros last year.

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Earnings per share were 0.45 euro, higher than 0.06 euro last year.

Earnings before interest and tax or EBIT was 521 million euros, up 3 percent from 505 million euros a year ago.

Adjusted EBIT dropped 4 percent to 697 million euros from 729 million euros a year earlier.

Revenues for the quarter increased 2 percent to 14.24 billion euros from 13.95 billion euros in the prior year.

Revenues were mainly driven by Commercial Aircraft, offset by lower revenues from lower deliveries and services at Helicopters and the perimeter change at Defence and Space.

For fiscal 2017, Airbus still expects mid-single-digit percentage growth in adjusted EBIT and adjusted earnings per share compared to 2016.

As the basis for its 2017 guidance, Airbus continues to expect the world economy and air traffic to grow in line with prevailing independent forecasts, which assume no major disruptions.

Airbus still expects to deliver more than 700 commercial aircraft which depends on engine manufacturers meeting commitments.

Further, the company said that the perimeter change in Defence and Space is expected to reduce EBIT Adjusted by around 150 million euros and adjusted earnings per share by around 14 cents.

The investigations initiated by the UK’s Serious Fraud Office (SFO) and France’s Parquet National Financier (PNF) following self-disclosure by Airbus to the UK authorities are ongoing.[break]

Airbus is cooperating fully with both authorities, including in respect of potential issues across Airbus' business.

The SFO and PNF investigations and any penalties potentially levied as a result could have negative consequences for Airbus.

The potential imposition of any monetary penalty (and the amount thereof) or other sanction arising from the SFO and PNF investigations will depend on the ultimate factual and legal findings of the investigation, and could have a material impact on the financial statements, business and operations of Airbus.

However, at this stage it is too early to determine the likelihood or extent of any such possible consequence.

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