Tag: Faury

Airbus Reports Third Quarter 2021 Results

October 28, 2021 / WIL BALDWIN

Amsterdam, 28 October 2021 – Airbus SE (Paris stock exchange symbol: AIR) reported consolidated financial results for the nine months ended 30 September 2021.

“The nine-month results reflect a strong performance across the company as well as our efforts on cost containment and competitiveness. As the global recovery continues, we are closely monitoring potential risks to our industry. We are focused on securing the A320 Family ramp up and striving to ensure the right industrial and supply chain capabilities are in place,” said Airbus Chief Executive Officer Guillaume Faury. “Based on our nine-month performance, we have updated our 2021 earnings and cash guidance. We are strengthening the balance sheet to secure investment for our long-term ambitions.

Gross commercial aircraft orders totalled 270 (9m 2020: 370 aircraft) with net orders of 133 aircraft after cancellations (9m 2020: 300 aircraft). The order backlog was 6,894 commercial aircraft on 30 September 2021. Airbus Helicopters booked 185 net orders (9m 2020: 143 units), including 10 helicopters of the Super Puma Family. Airbus Defence and Space’s order intake by value was € 10.1 billion (9m 2020: € 8.2 billion) with third quarter orders including 56 C295 aircraft for India, two A400Ms for Kazakhstan and support and spares contract renewals for the German and Spanish Eurofighter fleets.

Consolidated revenues increased 17 percent to € 35.2 billion (9m 2020: € 30.2 billion), mainly reflecting the higher number of commercial aircraft deliveries compared to 9m 2020. A total of 424 commercial aircraft were delivered (9m 2020: 341 aircraft), comprising 34 A220s, 341 A320 Family, 11 A330s(1), 36 A350s and 2 A380s. Revenues generated by Airbus’ commercial aircraft activities increased 21 percent, largely reflecting the delivery performance compared to 2020 which was strongly impacted by COVID-19. Airbus Helicopters delivered 194 units (9m 2020: 169 units) with revenues up 14 percent reflecting growth in services as well as the higher deliveries, notably more helicopters from the Super Puma family. Revenues at Airbus Defence and Space were broadly stable year-on-year with four A400M military airlifters delivered in 9m 2021.

Consolidated EBIT Adjusted – an alternative performance measure and key indicator capturing the underlying business margin by excluding material charges or profits caused by movements in provisions related to programmes, restructuring or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses – was € 3,369 million (9m 2020: € -125 million).

The EBIT Adjusted related to Airbus’ commercial aircraft activities totalled € 2,739 million (9m 2020: € -641 million), mainly driven by the operational performance linked to deliveries and efforts on cost containment and competitiveness.

The A220 production rate, which is currently at 5 aircraft a month, is expected to increase to around rate 6 per month in early 2022, with a monthly production rate of 14 envisaged by the middle of the decade. On the A320 Family programme, the Company is working to secure the ramp up and is on trajectory to achieve a monthly rate of 65 aircraft by summer 2023. The recent commercial successes of the A330 programme enable a monthly rate increase from around 2 to almost 3 aircraft at the end of 2022. The A350 programme is expected to increase from around 5 to around 6 aircraft a month in early 2023.

Airbus Helicopters’ EBIT Adjusted increased to € 314 million (9m 2020: € 238 million), driven by services, programme execution and lower spending on Research & Development (R&D).

EBIT Adjusted at Airbus Defence and Space increased to € 284 million (9m 2020: € 266 million), mainly reflecting the Division’s efforts on cost containment and competitiveness.

Consolidated self-financed R&D expenses totalled € 1,919 million (9m 2020: € 2,032 million).

Consolidated EBIT (reported) amounted to € 3,437 million (9m 2020: € -2,185 million), including net Adjustments of € +68 million.

These Adjustments comprised:

€ +190 million related to the A380 programme, of which € +45 million were booked in Q3;
€ -165 million related to the dollar pre-delivery payment mismatch and balance sheet revaluation, of which € +5 million were in Q3;
€ +43 million of other Adjustments, including compliance costs, of which € -6 million were in Q3.

The financial result was € -172 million (9m 2020: € -712 million). It mainly reflects the net interest result of € -233 million partly offset by € +63 million related to the revaluation of the Dassault Aviation equity stake. Consolidated net income(2) was € 2,635 million (9m 2020 net loss: € -2,686 million) with consolidated reported earnings per share of € 3.36 (9m 2020 loss per share: € -3.43).

Consolidated free cash flow before M&A and customer financing was € 2,260 million (9m 2020: € -11,798 million), reflecting efforts on cash containment and also included a positive phasing impact from working capital. Consolidated free cash flow was € 2,308 million (9m 2020: € -12,276 million).

On 30 September 2021, the gross cash position stood at € 21.7 billion (year-end 2020: € 21.4 billion) with a consolidated net cash position of € 6.7 billion (year-end 2020: € 4.3 billion). The Company’s liquidity position remains strong, standing at € 27.7 billion at the end of September 2021. Given the increase in the net cash position and the robust liquidity, a decision was taken not to renew the undrawn € 6.2 billion Supplemental Liquidity Line which matured in September. In the meantime, the maturity of the € 6 billion Revolving Syndicated Credit Facility has been extended by a year.

Outlook

As the basis for its 2021 guidance, the Company assumes no further disruptions to the world economy, air traffic, the Company’s internal operations, and its ability to deliver products and services.

The Company’s 2021 guidance is before M&A.

On that basis, the Company has updated its 2021 guidance and now targets to achieve in 2021 around:

600 commercial aircraft deliveries;
EBIT Adjusted of € 4.5 billion;
Free Cash Flow before M&A and Customer Financing of € 2.5 billion.

Airbus Delivers First A350 From China Widebody Completion and Delivery Center

July 23, 2021 / WIL BALDWIN

Airbus has delivered the first A350 from its widebody completion & delivery centre in Tianjin (C&DC), China, taking additional steps in the expansion of its global footprint and long-term strategic partnership with China.

The A350-900 aircraft was delivered to China Eastern Airlines, the largest Airbus operator in Asia and second largest in the world. At the end of June 2021, China Eastern Airlines operated an Airbus fleet of 413 aircraft, including 349 A320 Family aircraft, 55 A330 Family aircraft and nine A350 aircraft.

Located at the same site as the Airbus Tianjin A320 Family Final Assembly Line and the Airbus Tianjin Delivery Centre, the widebody C&DC covers the aircraft completion activities, including cabin installation, aircraft painting and production flight test, as well as customer flight acceptance and aircraft delivery.

The centre was inaugurated in September 2017 with its capability on A330s. Then, during the visit of French President Emmanuel Macron to China in 2019, a Memorandum of Understanding on the Further Development of Industrial Cooperation was signed in Beijing by He Lifeng, Chairman of the National Development and Reform Commission (NDRC) of China, and Guillaume Faury, Airbus Chief Executive Officer, announcing the C&DC would extend its capability to A350 aircraft.

The A350 features the latest aerodynamic design, a carbon-fibre fuselage and wings, plus new fuel-efficient Rolls-Royce engines. Together, these features translate into unrivalled levels of operational efficiency with a 25 per cent reduction in fuel burn and CO₂ emissions. The A350’s ‘Airspace by Airbus’ cabin is the quietest of any widebody aircraft and offers passengers and crews the most modern in-flight products for the most comfortable flying experience.

At the end of June 2021, the A350 Family had received 915 firm orders from 49 customers worldwide, making it one of the most successful widebody aircraft ever.

French Airbus Workers Sign Key Restructuring Deal

October 12, 2020 / WIL BALDWIN

FILE PHOTO: The logo of Airbus is pictured at the entrance of the Airbus facility in Bouguenais, near Nantes, France, July 2, 2020. REUTERS/Stephane Mahe/File Photo

TOULOUSE, France (Reuters) – Major French unions on Monday signed a keenly awaited labor deal with Europe’s Airbus <EADSY> covering job reductions and furloughs for production workers affected by coronavirus-blighted demand for passenger jets.

After three months of talks, unions representing a majority of the planemaker’s French workers signed an agreement paving the way for 4,200 job reductions in France, including 3,400 in Toulouse, Europe’s aerospace capital where Airbus is based.

Unions say the agreement will prevent compulsory redundancies, although Chief Executive Guillaume Faury recently warned staff that voluntary measures would not be enough.

Click the link below for the full story!

https://finance.yahoo.com/news/french-airbus-workers-sign-key-191527471.html

**Airbus Delivered the A330 Family’s 1,500th airplane on 21st September to Delta Air Lines**

Airbus Warns Staff on Jobs With its ‘Survival at Stake’

April 27, 2020 / WIL BALDWIN

FILE PHOTO: Airbus CEO Guillaume Faury poses before Airbus’s annual press conference on full-year results

By Tim Hepher

PARIS (Reuters) – European planemaker Airbus issued a bleak assessment of the impact of the coronavirus crisis, telling the company’s 135,000 employees to brace for potentially deeper job cuts and warning its survival is at stake without immediate action.

In a letter to staff, Chief Executive Guillaume Faury said Airbus was “bleeding cash at an unprecedented speed” and that a recent drop of a third or more in production rates did not reflect the worst-case scenario and would be kept under review.

Airbus said it did not comment on internal communications.

The letter was sent to employees late on Friday, days before the company is due to give first-quarter results overshadowed by a pandemic that has left airlines struggling to survive and virtually halted jet deliveries since mid-March.

Airbus has begun implementing government-assisted furlough schemes starting with 3,000 workers in France, “but we may now need to plan for more far-reaching measures,” Faury said.

“The survival of Airbus is in question if we don’t act now,” he added.

Industry sources have said a new restructuring plan similar to its 2007 Power8 which saw 10,000 job cuts could be launched in the summer, but Faury indicated the company was already exploring “all options” while waiting for clarity on demand.

People familiar with the matter say Airbus is also in active discussions with European governments about tapping schemes to assist struggling industries, including state-guaranteed loans.

It has already expanded commercial credit lines with banks, buying what Faury described as “time to adapt and resize”.

Click the link below to read the full story!

https://finance.yahoo.com/news/airbus-warns-staff-jobs-survival-024101490.html

Airbus A350-1000 Deployed in Fight Against COVID-19

April 6, 2020 / WIL BALDWIN

Airbus continues to purchase and supply millions of face masks from China, the large majority of which will be donated to governments of the Airbus home countries, namely France, Germany, Spain and the UK.

An Airbus flight test crew has just completed its latest mission with an A350-1000 test aircraft. This is the third of such missions between Europe and China. The aircraft returned to France with a cargo of 4 million face masks on Sunday 5 April.

The A350-1000 left Toulouse, France, on Friday 3 April, reaching the Airbus site in Tianjin, China on 4 April and returning to Hamburg the same day.

Since mid-March, the previous two missions were performed by an A330-800 and an A330 Multi-Role Tanker Transport (MRTT). Airbus also deployed an A400M and its Beluga fleet to transport shipments of masks between its European sites, in France, Germany, the UK and Spain.

Airbus will continue to support the fight against the Coronavirus pandemic wherever possible.

“I would like to pay tribute to all the Airbus teams, globally, supporting the fight against COVID-19. They’re living our values in assisting those who are saving lives every day”, said Guillaume Faury, Airbus CEO. “

Airbus is focused on the health and safety of its employees and supporting its customers and the industry eco-system with business continuity. At the same time Airbus is contributing to many vital public and private services and working with partners who rely on aircraft, helicopters, space and security solutions to carry out life-saving missions in support of the global pandemic.

Airbus is deploying its employees, their expertise and know-how and leveraging technology in this fight against the COVID-19 pandemic, for example in designing and manufacturing ventilators and 3D printed visors which are critical resources for hospitals.

The Company is partnering with other organisations in unprecedented ways to achieve this goal as fast as possible.

Airbus and Government of Québec Become Sole Owners of the A220 Program

February 17, 2020 / WIL BALDWIN

Bombardier transfers its remaining interest in Airbus Canada Limited Partnership (Airbus Canada) to Airbus SE and the Government of Québec
Airbus now holds 75 percent of Airbus Canada with the Government of Québec increasing its holding to 25 percent for no cash consideration
Bombardier work packages for the A220 and A330 will be transferred to Airbus, through its subsidiary Stelia Aerospace, securing 360 jobs in Québec
Bombardier will receive US$591M, net of adjustments, of which US$531M was received at closing, and is released of its future funding capital requirement to Airbus Canada
Over 3,300 Airbus jobs secured in Québec

Amsterdam / Montreal – Airbus SE (EADSY), the Government of Québec and Bombardier Inc. (BBD-B.TO) have agreed upon a new ownership structure for the A220 program, whereby Bombardier transferred its remaining shares in Airbus Canada Limited Partnership (Airbus Canada) to Airbus and the Government of Québec. The transaction is effective immediately.

This agreement brings the shareholdings in Airbus Canada, responsible for the A220, to 75 percent for Airbus and 25 percent for the Government of Québec respectively. The Government’s stake is redeemable by Airbus in 2026 – three years later than before. As part of this transaction, Airbus, via its wholly owned subsidiary Stelia Aerospace, has also acquired the A220 and A330 work package production capabilities from Bombardier in Saint-Laurent, Québec.

This new agreement underlines the commitment of Airbus and the Government of Québec to the A220 programme during this phase of continuous ramp-up and increasing customer demand. Since Airbus took majority ownership of the A220 programme on July 1, 2018, total cumulative net orders for the aircraft have increased by 64 percent to 658 units at the end of January 2020.

“This agreement with Bombardier and the Government of Québec demonstrates our support and commitment to the A220 and Airbus in Canada. Furthermore it extends our trustful partnership with the Government of Québec. This is good news for our customers and employees as well as for the Québec and Canadian aerospace industry,” said Airbus Chief Executive Officer Guillaume Faury. “I would like to sincerely thank Bombardier for the strong collaboration during our partnership. We are committed to this fantastic aircraft programme and we are aligned with the Government of Québec in our ambition to bring long-term visibility to the Québec and Canadian aerospace industry.”

“I am proud that our government was able to reach this agreement. We have succeeded in protecting paying jobs and the exceptional expertise developed in Québec, despite the major challenges we faced in this regard when we took office. We have consolidated the government’s position in the partnership, while respecting our commitment not to reinvest in the program. By opting to strengthen its presence here, Airbus has chosen to focus on our talents and our creativity. The decision of an industrial giant like Airbus to invest more in Québec will help attract other world-class prime contractors,” the Premier of Québec, François Legault, stated.

“This agreement is excellent news for Québec and its aerospace industry. The A220 partnership is now well established and will continue to grow in Québec. The agreement will allow Bombardier to improve its financial situation and Airbus to increase its presence and footprint in Québec. It’s a win–win situation for both the private partners and the industry,” pointed out Pierre Fitzgibbon, Minister of the Economy and Innovation.

With this transaction, Bombardier will receive a consideration of $591M from Airbus, net of adjustments, of which $531M was received at closing and $60M to be paid over the 2020-21 period. The agreement also provides for the cancellation of Bombardier warrants owned by Airbus, as well as releasing Bombardier of its future funding capital requirement to Airbus Canada.

“This transaction supports our efforts to address our capital structure and completes our strategic exit from commercial aerospace,” said Alain Bellemare, President and CEO Bombardier, Inc. “We are incredibly proud of the many achievements and tremendous impact Bombardier had on the commercial aviation industry. We are equally proud of the responsible way in which we have exited commercial aerospace, preserving jobs and reinforcing the aerospace cluster in Québec and Canada. We are confident that the A220 program will enjoy a long and successful run under Airbus’ and the Government of Québec’s stewardship.”

The single aisle market is a key growth driver, representing 70 percent of the expected global future demand for aircraft. Ranging from 100 to 150 seats, the A220 is highly complementary to Airbus’ existing single aisle aircraft portfolio, which focuses on the higher end of the single-aisle business (150-240 seats).

As part of the agreement, Airbus has acquired the Airbus A220 and A330 work package production capability from Bombardier in Saint-Laurent, Québec. These production activities will be operated in the Saint Laurent site by Stelia Aéronautique Saint Laurent Inc., a newly created subsidiary of Stelia Aerospace, which is a 100 percent Airbus subsidiary.

Stelia Aéronautique Saint-Laurent will continue the production of the A220 cockpit and aft fuselage production, as well as A330 workpackages, for a transition period of approximately three years at the Saint-Laurent facility. A220 workpackages will then be transferred to the Stelia Aerospace site in Mirabel to optimize the logistical flow to the A220 Final Assembly Line also located in Mirabel. Airbus plans to offer all current Bombardier employees working on the A220 and A330 work packages at Saint-Laurent opportunities around the A220 programme’s ramp-up, ensuring know-how retention as well as business continuity and growth in Québec.

At the end of January 2020, 107 A220 aircraft were flying with seven customers on four continents. In 2019 alone, Airbus delivered 48 A220s, with the further ramp-up to be continued.

Emirates Airlines Orders 50 A350XWB at Dubai Airshow 2019

November 18, 2019 / WIL BALDWIN

Airbus and Emirates Airline have signed a purchase agreement for 50 A350-900s – Airbus’ newest generation widebody aircraft.

The order was signed at Dubai Airshow 2019 by His Highness Sheikh Ahmed bin Saeed Al Maktoum and Guillaume Faury, Airbus Chief Executive Officer.

HH Sheikh Ahmed said: “Today, we are pleased to sign a firm order for 50 A350 XWB’s, powered by Rolls-Royce Trent XWB engines. This follows a thorough review of various aircraft options and of our own fleet plans. It is Emirates’ long-standing strategy to invest in modern and efficient aircraft, and we are confident in the performance of the A350 XWB.

“Complementing our A380’s and 777’s, the A350’s will give us added operational flexibility in terms of capacity, range and deployment. In effect, we are strengthening our business model to provide efficient and comfortable air transport services to, and through, our Dubai hub.”

Sheikh Ahmed added: “This deal reflects our confidence in the future of the UAE’s aviation sector, and is a strong affirmation of Dubai’s strategy to be a global nexus connected to cities, communities and economies via a world-class and modern aviation sector.”

“We are honoured by Emirates’ strong vote of confidence in our newest widebody aircraft, taking our partnership to the next level. The A350 will bring unbeatable economics and environmental benefits to their fleet,” said Guillaume Faury, Airbus Chief Executive Officer. “We look forward to seeing the A350 flying in Emirates colours!”

The A350 XWB offers by design unrivalled operational flexibility and efficiency for all market segments – up to ultra-long haul (17,900km). Its Airspace by Airbus cabin is the quietest of any twin-aisle aircraft and offers passengers and crews the most modern in-flight flying experience. The aircraft features the latest aerodynamic design, a carbon fibre fuselage and wings, plus new fuel-efficient Rolls-Royce Trent XWB engines. Together, these latest technologies result in 25% lower operating costs, as well as 25% reduction in fuel burn and CO2 emissions compared with previous-generation competing aircraft – demonstrating Airbus’ commitment to minimise its environmental impact while remaining at the cutting edge of air travel.

Airbus achieves new commercial aircraft delivery record in 2018

January 10, 2019 / WIL BALDWIN

Deliveries total 800 aircraft, 11 percent higher than in 2017
Net orders total 747, backlog increases to 7,577 aircraft

Airbus SE (stock exchange symbol: AIR) delivered 800 commercial aircraft to 93 customers in 2018, meeting its full year delivery guidance and setting a new company record. Deliveries were 11 percent higher than the previous record of 718 units, set in 2017. For the 16th year in a row now, Airbus has increased the number of commercial aircraft deliveries on an annual basis.

In total, the 2018 commercial aircraft deliveries comprise:

20 A220s (since it became part of the Airbus family in July 2018);
626 A320 Family (vs 558 in 2017), of which 386 were A320neo Family (vs 181 NEOs in 2017);
49 A330s (vs 67 in 2017) including the first three A330neo in 2018;
93 A350 XWBs (vs 78 in 2017);
12 A380s (vs 15 in 2017).

In terms of sales, Airbus achieved 747 net orders during 2018 compared with 1,109 net orders in 2017. At the end of 2018, the backlog of Airbus commercial aircraft reached a new industry record and stood at 7,577 aircraft, including 480 A220s, compared with 7,265 at the end of 2017.

“Despite significant operational challenges, Airbus continued its production ramp-up and delivered a record number of aircraft in 2018. I salute our teams around the globe who worked until the end of the year to meet our commitments,” said Guillaume Faury, President Airbus Commercial Aircraft. “I am equally pleased about the healthy order intake as it shows the underlying strength of the commercial aircraft market and the trust our customers are placing in us. My gratitude goes out to all of them for their ongoing support.” He added: “As we look to further increase our industrial efficiency, we will continue making the digitalisation of our business a key priority.”

Over the last 16 years, Airbus has steadily increased its production year-by-year with the final assembly lines in Hamburg, Toulouse, Tianjin and Mobile complemented by the addition of the A220 line in Mirabel, Canada, during 2018. A notable contribution to Airbus’ delivery increase in 2018 came from the final assembly lines in the US and China. For the top-selling A320 Family in particular, the Final Assembly Line (FAL) in Mobile, Alabama, saw its 100^th delivery, and is now producing in excess of four units per month. Meanwhile, Airbus’ “FAL Asia” in Tianjin, China, achieved its 400^th A320 delivery, while in Germany Airbus commenced operations of its new, fourth production line in Hamburg. Overall, the A320 programme is on track to achieve rate 60 per month for the A320 Family by mid-2019. The Airbus teams successfully reached an important industrial milestone for the A350, achieving the targeted rate of 10 aircraft per month.

Airbus will report Full Year 2018 financial results on 14 February 2019.

Footnote:
The Full-Year 2018 net orders and backlog represent the contractual view. The Full-Year 2018 backlog value will be measured under IFRS 15 and will reflect the recoverable amount of revenues under these contracts. A significant reduction in order backlog value is expected mainly due to the adjustment for net prices versus list prices. The FY 2017 backlog will not be restated.

Story and image from http://www.airbus.com

Airbus Loses 2018 Jet Order Race to Boeing

January 9, 2019 / WIL BALDWIN

PARIS (Reuters) – Europe’s Airbus lost out to Boeing in 2018, breaking a five-year winning streak against its U.S. rival for the number of jet orders, slumping to its lowest share of the $150 billion jet market in six years, data showed on Wednesday.

Airbus posted 747 net 2018 orders, down 33 percent from the previous year, including 135 for the A220 jetliner which it took over from Canada’s Bombardier in July. Boeing beat Airbus for the first time since 2012 with 893 net orders.

Airbus delivered 800 jets, up 11 percent, including 20 of the small A220 model, leaving Boeing as the world’s largest planemaker by manufacturing volume for a seventh straight year.

Although Boeing missed its delivery target and Airbus had previously lowered its target due to strains on the industry’s global supply chain, strong demand for passenger jets expanded total deliveries by 8 percent, the fastest pace in six years.

Planemaking chief Guillaume Faury welcomed the deliveries, which set a company record, and a “healthy order intake,” with waiting lists for many new jets stretching for up to 7 years.

Insiders say the quest for new business has, however, been overshadowed in the past year by industrial problems, management changes and morale problems coinciding with a corruption probe.

A resurgent Boeing has been cashing in on greater availability and declining costs for its 787 Dreamliner, while struggling to contain its European rival in the lucrative segment for large narrowbody jets just above 200 seats.

The order figures underscore Airbus’s decision to take over the lightweight but loss-making Bombardier CSeries aircraft, generating 135 orders worth $12 billion at list prices.

Without that boost, Airbus took just 41 percent of the core market in which it competes with Boeing, the lowest since 2009.

Highlighting the pressure Airbus has been facing recently in the market for large, high-margin wide-body jets, the European company was outsold three to one by Boeing for a second year.

However it reached a targeted production rate of 10 aircraft a month for its wide-body A350, which competes with the 787 and larger 777, at the end of the year, company officials said.

Airbus also trimmed the order list for its slow-selling A380 superjumbo, officially cancelling an order for 10 from Hong Kong Airlines four years after Reuters first reported that the airline had axed the deal, triggering financial negotiations.

The world’s largest airliner is mostly dependent on Dubai’s Emirates as Airbus slows production to a trickle in the hope of a future upturn, though many airlines are for now backing smaller jets.

(Reporting by Tim Hepher, Editing by Dominique Vidalon and Elaine Hardcastle)

Image from http://www.boeing.com

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