Airbus SE Slashes Delivery Target Amid Production Woes
October 30 2019 - 2:12AM
Dow Jones News
By Benjamin Katz
Airbus SE (AIR.FR) cut its delivery goal for the year by as many
as 30 aircraft as it wades through production hang ups, even as the
European plane maker remains poised to overtake Boeing Co. (BA) as
the world's largest plane maker by year end.
The Toulouse, France-based plane maker said it will now deliver
860 commercial aircraft this year. That is a company record but shy
of the 880 to 890 planes it had promised to build. It cut free cash
flow guidance to 3 billion euros ($3.33 billion) for 2019 from
prior forecasts of as much as EUR4 billion.
Both Airbus and rival Boeing have been on major production
rampups as each aims to meet a surge in demand for their more fuel
efficient narrowbody jets. Airbus has been struggling to boost
output of its A320neo family, especially a version that offers
airlines highly customized cabins.
"We are focused on the A320neo rampup and improving the
industrial flow," Airbus Chief Executive Guillaume Faury said in a
statement.
Despite the cut, Airbus is still on track to overtake Boeing as
the world's largest aircraft manufacturer as the U.S. company
battles to overcome a crisis with its 737 MAX, the main competitor
to the neo. The model has been grounded since March after two fatal
crashes. That has halted deliveries to customers and forced Boeing
to pare back production rates.
Airbus has handed over 571 planes to customers in the first nine
months of the year, compared with 301 by Boeing. That sets Airbus
up to win back the title of biggest plane maker for the first time
since 2011, despite the reduction in full-year delivery
guidance
Airbus reported third-quarter net income of EUR989 million, up
3% from the prior year. It posted EUR1.60 billion in adjusted
earnings before interest and taxes, the plane maker's more closely
followed metric, a 2% gain. Sales fell 1% to EUR15.3 billion.
Write to Benjamin Katz at Ben.Katz@wsj.com
(END) Dow Jones Newswires
October 30, 2019 02:57 ET (06:57 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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