The profit of Airbus fell by 3.6% in 2016, after the last wave of deliveries of planes failed to offset the cost of higher production model A350 and the impact of the problems with engines that hit supplies the latest models A320. The earnings before interest and tax and before one-off effects fell to 3.96 billion EUR in 2016 from 4.11 billion EUR an year earlier. The results , however, surpassed the analysts forecasts, who predicted profit of 3.80 billion EUR.
Airbus achieved its target of positive free cash flow after having delivered 266 aircraft last quarter, or two-fifths of the total for the year. However, 85% of aircraft delivered are single-aisle and from older versions after problems with engines Pratt&Whitney slowed production model with higher margin Neo. Reinforcing A350 also proved costly because of shortage of indoor equipment.
Airbus, which envisaged that the profit before taxes and interest for 2016 will remain unchanged, not counting one-off effects, sells and consumer financing, reports also criminal fines of 2.2 billion EUR because of delays in deliveries of military aircraft A400M. In the first half similar charges amounted to 1.03 billion EUR.
“We fulfilled our commitments an year ago and reached the guidelines and goals with one exception – A400M, where he had to take another significant fine”, said CEO of Airbus, Tom Enders. “The adjusted earnings before taxes and interest should be reported growth between 4% and 6% this year, not counting mergers and acquisitions”, added he.
The company sold part of its activities in the military sector last year and paying large sums to finance after European agencies have suspended their support for export credits against corruption investigation launched by the US.
Cash flow for the year amounted to 1.4 billion EUR after a negative level of 4.73 billion EUR in nine months. The positive results are due to the jump in deliveries in the fourth quarter.