Airbus Posted Strong 1Q Cash Flow, Profit, But Remains Cautious on 2021 -- Earnings Review
29 Avril 2021 - 12:36PM
Dow Jones News
By Olivia Bugault
Airbus SE released first-quarter results on Thursday morning.
Here's what we watched:
NET PROFIT REVIEW: The European plane maker swung to a net
profit of 362 million euros ($438.9 million) in the quarter, from a
net loss of EUR481 million for the same period last year.
EBIT: Airbus's more closely watched adjusted earnings before
interest and taxes was 9% ahead of market expectations at EUR694
million. Last year, the company posted an adjusted EBIT of EUR281
million.
WHAT WE WATCHED:
-IMPRESSIVE FCF: The company's free cash flow was strong in the
first quarter at EUR1.16 billion, ahead of expectations and far
above last year's cash outflow of roughly EUR8 billion, Citi said.
"The strong cash flow was primarily due to EUR800M reduction in
inventory and, we suspect due to the oddity of phasing of
deliveries," the bank said.
-RECOVERY: "The path to recovery will not be linear," Airbus
Chief Executive Guillaume Faury said during a media call. Some
regions are showing signs of domestic air traffic rebound, while
others are lagging behind such as Europe where restrictive measures
are still largely in place, he said. India, where the number of
Covid-19 infections have been surging these last weeks, is also a
concern, Mr. Faury said.
-UNCHANGED GUIDANCE: Despite a positive quarter, Airbus
reiterated its 2021 outlook, with no changes to production rates or
timelines. At the least, Airbus still expects to match the 566
deliveries achieved last year and to increase the production rate
of A320 family jets to 43 a month in the third quarter and 45 a
month in the fourth quarter, from 40. "Much of the beat is due to
well flagged fluctuations that will reverse in the rest of the
year," Citi said.
Write to Olivia Bugault at olivia.bugault@wsj.com
(END) Dow Jones Newswires
April 29, 2021 06:21 ET (10:21 GMT)
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