By Bjorn Fehrm
May 4, 2023, © Leeham News: Airbus has presented its results for the first quarter of 2023. The supply chain problems that lowered the 2022 production targets and that Airbus thought would subside in 2023 persist.
The company sticks to its 2023 guidance of delivering 720 commercial aircraft but now adds that the year will be more backloaded than thought. Guidance of EBIT adjusted of €6bn and Free cash flow of €3bn remains.
Airbus delivered 127 commercial aircraft in the quarter, compared with 140 last year. Net orders increased from 83 for 1Q2022 to 142 for the quarter.
Revenue for 1Q2023 was €12.0bn (€11.8bn 1Q2022), operating profit €1.3bn (called EBIT adjusted, -€0.8bn 1Q2022), and net profit was €0.47bn (€1.22bn). The net profit for 1Q2023 was adjusted for a Dollar to Euro mismatch on predelivery payments of €0.4bn.
Free cash flow for 1Q2023 was €-0.9bn (€0.2bn), and the net cash position end of 1Q2023 was €8.4bn (€9.4bn end of 2022).
Guidance for 2023 remains:
Of the 127 (140) delivered aircraft, 106 (109) were A320/A321, 10 (11) A220, 5 (16) A350, and 6 (6) A330. The surprise is the weak performance of the A350.
Market demand is strong, with gross orders at 156 aircraft (1Q2022 253) and net orders of 142 (83 1q2022). The single-aisle A320/321 series is sold out until 2029.
The supply chain problems for commercial aircraft do not go away, and the cabin side has reappeared as a problem area. The monthly delivery rate for the A320 family still targets a rate of 65 by the end of 2024.
The helicopter side had a strong quarter, with an increase in deliveries from 39 helicopters last year to 71 for 1Q2023. Revenue increased by 26% to €1.6bn (€1.3bn) and EBIT by 73% to €0.16bn (€0.1bn).
Military and Space systems deliveries declined. Revenues decreased by 6% to €2.3bn (€2.5bn). EBIT sank 62% to €0.04bn (€0.1bn). One A440M was delivered in 1Q2023.