Airbus Group first-half profit rises, takes new A400M charge
Analysts polled by Reuters had expected operating profit of 1.06 billion euros.
Increasing production at factories in Germany, France, China and the US meant Airbus would be leaning heavily on suppliers, with partners such as engine maker Safran SA saying this week that it had hit the limit of its production capabilities.
Plane maker Airbus Group SE says its net profit rose 34 percent in the first half of the year to 1.52 billion euros ($1.68 billion.).
Airbus shares rose 3.8 percent to 64.80 euros in morning trading in Europe.
The group’s results included a charge of 290 million euros related to the Airbus A400M military transporter programme, which suffered a setback after one of the airlifters crashed during a test flight near the Spanish city of Seville in May, killing four people.
Chief Executive Tom Enders said the world’s second-largest aerospace firm behind U.S. rival Boeing (BA.N) was focusing on the execution of aircraft programmes such as the A350 passenger jet and the troubled A400M military plane.
Reuters reported on Thursday that the accident had led to new development delays of up to three months.
The A380 superjumbo is “on track for breakeven by the year-end”, Airbus said in a statement.
The company pointed out that the industrial ramp-up of its wide-body A350 XWB program was gaining traction, with Vietnam Airlines becoming a second operator in June after Qatar Airlines.
In 2015, before mergers & acquisitions (M&A), Airbus Group expects an increase in revenues and targets a slight increase in EBIT before one-off.
Airbus had been working to clear a backlog of aircraft orders from several years, with its A320neo the fastest-selling commercial airliner in aviation history.
Also lifting sentiment was an improvement in the company’s currency hedging book that has seen it unable to benefit significantly from a strong dollar until about 2018.