ERJ - Airbus keeps delivery goals unchanged amid supply-chain hurdles

2023-05-03 15:06:16 ET

Airbus ( OTCPK:EADSY ) ( OTCPK:EADSF ) on Wednesday maintained its goal of delivering about 720 planes to airlines or other customers by the end of the year. Analysts had questioned the feasibility of the target after the company blamed supply-chain constraints for delivering fewer plans than forecast during the first quarter of the year.

"We continue to face an adverse operating environment that includes in particular persistent tensions in the supply chain," Guillaume Faury, CEO of Airbus ( OTCPK:EADSY ) ( OTCPK:EADSF ), said in a statement. "Our 2023 guidance is unchanged with commercial aircraft deliveries expected to be backloaded."

Airbus ( OTCPK:EADSY ) ( OTCPK:EADSF ) said revenue slipped 2% from a year earlier to 11.76 billion euros ($12.94 billion) in Q1. The European company delivered 127 planes to 54 customers during the three-month period. Commercial aircraft revenue fell 5%.

Its helicopter business performed better with revenue rising 26% from the previous year, while deliveries expanded to 71 rotary craft from 39 last year.

Airbus ( OTCPK:EADSY ) ( OTCPK:EADSF ) maintained its target of producing 65 A320 narrow-body aircraft a month by the end of next year and 75 a month in 2026. The company is planning for four a month of the A330 by next year, and nine a month of the A350 by the end of 2025.

Its adjusted earnings before interest and taxes fell to 773 million euros in the quarter from 1.26 billion a year earlier. Reported net profit dropped to 466 million euros from 1.22 billion euros during the comparable periods.

The company provided a consensus estimate that showed 21 analysts on average had estimated revenue of 11.37 billion euros, adjusted earnings of 736 million euros and a profit of 528 million euros for Q1.

Airbus ( OTCPK:EADSY ) ( OTCPK:EADSF ) maintained its estimate of adjusted earnings at about 6 billion euros for 2023. Free cash flow before deal activity and customer financing is forecast to be approximately 3 billion euros.

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