Airbus Stock Down On Hefty Q4 Loss; Raises Stake In A220 Program

Shares of Airbus SE (EADSF.PK,EADSY.PK) were losing around 1 percent in the early morning trade on Thursday after the European plane maker reported hefty loss in its fourth quarter due to charges. Revenues, however, increased with strong commercial aircraft deliveries.

Looking ahead to fiscal 2020, Airbus targets around 880 commercial aircraft deliveries, and to deliver an Adjusted EBIT of approximately 7.5 billion euros. In the year 2019, consolidated Adjusted EBIT was 6.95 billion euros, and Airbus’ Adjusted EBIT was 6.36 billion euros.

Separately, Airbus announced that it has increased stake in Airbus Canada Limited Partnership, responsible for the A220 commercial jet program, to 75 percent as Bombardier Inc. (BBD.B.TO) exited the program. The Government of Quebec now holds the remaining 25 percent stake.

Airbus has also acquired the A220 and A330 work package production capabilities from Bombardier in Saint-Laurent, Quebec.

For its fourth quarter, Airbus’ consolidated net loss was 3.55 billion euros, compared to last year’s profit of 1.60 billion euros. Loss per share was 4.56 euros, compared to profit per share of 2.06 euros a year ago.

The latest results reflected 4.91 billion euros charges related to penalties recognised for the final agreements with the authorities resolving the compliance investigations as well as a charge related to revised export assumptions for the A400M.

Consolidated EBIT was negative 2.09 billion euros, compared to positive 2.37 billion euros last year. Adjusted EBIT dropped 9 percent to 2.81 billion euros from 3.10 billion euros a year ago, mainly reflecting the lower performance at Airbus Defence and Space.

Revenues for the quarter, however, increased 4 percent to 24.31 billion euros from last year’s 23.29 billion euros. The revenues were driven by the commercial aircraft delivery mix at Airbus, despite lower revenues at Airbus Defence and Space.

In 2019, consolidated order intake increased to 81.2 billion euros from 55.5 billion euros in 2018. The consolidated order book was valued at 471 billion euros as of December 31, 2019, up from 460 billion euros at last year’s end.

Net commercial aircraft orders increased to 768 aircraft from last year’s 747 aircraft.

Further, the Board of Directors will propose the payment of a 2019 dividend of 1.80 euros per share to the 2020 Annual General Meeting. This represents an increase of 9 percent.

In Paris, Airbus shares were trading at 134.88 euros, down 1.26 percent.

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