July 27, 2022, © Leeham News: Airbus Group today reported flat revenues for the first half, year-over-year but less profit.
Revenues for the six months this year were €24.8bn vs €24.6bn. Net income was €$1.9bn vs €2.2bn, a decline of 15%. Free cash flow was €1.65bn vs €2bn. The Group ended the second quarter with €7.2bn in cash, down from €7.7bn a year earlier. Total liquidity was €27.6bn.
Airbus said it still has a goal of producing 75 A320neos a month by 2025 but that it will adjust the ramp-up rate between now and then. Challenges with the supply chain slow the ramp up. Airbus now targets early 2024 for a rate of 65/mo, vs the second half of next year, a six-month delay. Entry into service for the A321XLR is now targeted for early 2024 vs 2023. Increasing production rates for the A330 and A350 depend on the supply chain, the company said.
Boeing has slowed the production rate ramp-up for the 737. It now will maintain a rate of 31/mo for the remainder of this year, also citing supply chain challenges. It had planned to increase production to 38/mo later this year.
The commercial unit reported earnings before interest and taxes (EBIT) of €2.276bn vs €2.291bn. Helicopters reported EBIT of €215m vs V183m. Defence and Space EBIT declined to €155m from €229m.
The problematic A400M took another charge, this time for €0.2bn. “Risks remain on the qualification of technical capabilities and associated costs,” Airbus said.
Airbus CEO Guillaume Faury said demand for the A320 family remains strong. Demand, though still weak, is beginning to recover for the A330neo and A350. Airbus is studying “several scenarios” to boost production rates.
Airbus, like Boeing, is hurt by the lack of engine deliveries. There were 26 “gliders” at the end of June. “We believe based on information from suppliers hope to be back to zero gliders by the end of this year,” Faury said. He does not expect cancellations.