February 18, 2021, © Leeham News: Airbus presented its results for 2020 today. The company reported a net loss of €0.5bn at revenues of €50bn (€70.5bn 2019). Airbus’ operations delivered a result of +€1.7bn; it was then reduced to a loss by charges of €2.2bn for the year.
Airliner deliveries reduced by 34% to 566 for the year (863), with net orders at 268 aircraft (768). A forecast for 2021 was given as same-level deliveries with operating profit at +€2bn and break-even Free Cash Flow.
Revenue for 2020 was €49.9bn (€70.5bn 2019), operating profit was €1.7bn (called EBIT adjusted, €6.9bn 2019), and net profit was -€0.51bn (€1.34bn). The net profit included write-downs of €1.2bn COVID restructuring (-15.000 employees, now about 1/3 done), -€385m A380, and -€630m financial revaluations/misc. items.
Free cash flow for 2020 was -€6.9bn (€3.5bn), and the net cash position end 2020 was €4.1bn (€12.5bn). The gross liquidity available if needed is €21.4bn.
Airbus will not pay a dividend for 2020.
Guidance for 2021 is:
Airbus CEO Guillame Faury sees a chance for a settlement of this decades-old feud as tariffs are now applied both ways between Europe and the US, a lose-lose situation that should force a solution.
Faury emphasized that advanced aerostructures will be a key technology for Airbus in the future. The integrated digital design and production of aerostructures call for tighter integration. This is good news for Premium Aerotec and Stelia as it means a closer relationship with Airbus with a possible reintegration on the cards.
Faury answered a question from the media if Airbus is too aggressive with its research into hydrogen airliner with “We want to be the innovative OEM, innovating towards sustainable aviation. Look at the advantage we gained with Fly-By-Wire 30 years ago. Many said it was not needed, this innovation has benefited us all this time”.
Of the 566 delivered aircraft, 446 were A320/A321. The future increase of A321 deliveries is not clear enough to restart the work on the A321 FAL in Toulouse.
The A220 represented 38 deliveries, with A330 at 19. The A350 holds a five-per-month rate with 59 units delivered last year. Finally, the A380 line delivered four aircraft.
Airbus says the market is too volatile to predict when the pickup in deliveries will happen. Demand will govern, and the airlines don’t have planning clarity with short-term changes in government travel regulations being on a weekly basis rather than longer-term.
The helicopter market has stabilized, and the division contributed €0.46bn to the group’s net profit.
After years of declining orders, revenue and profits orders were up 39%, revenues flat, and profit +€0.4bn instead of a loss of €0.9bn 2019.
Deliveries of A440M were as planned at nine aircraft, with all customer nations now having A400M (Belgium was the last nation to take delivery in 2020).