Airbus keeps outlook as Q1 core earnings rise

The Airbus logo is pictured at Airbus headquarters in Blagnac near Toulouse, France, March 20, 2019. (File/Regis Duvignau/Reuters)
Updated 30 April 2019

Airbus keeps outlook as Q1 core earnings rise

  • Quarterly revenues rose 24 percent from a year ago to 12.55 billion euros ($14 billion), while adjusted operating profit jumped to 549 million euros from 14 million last year
  • Airbus suffered a cash outflow of 4.3 billion euros in the quarter as it built inventories but the company is expected to see that reverse course later in the year

PARIS: European planemaker Airbus stuck to its full-year financial targets after reporting slightly higher-than-expected core first-quarter profits, overshadowed by a heavy drain on cash as it stocked parts to ease industrial bottlenecks.
Quarterly revenues rose 24 percent from a year ago to 12.55 billion euros ($14 billion), while adjusted operating profit jumped to 549 million euros from 14 million last year, driven by higher commercial jet deliveries.
A Reuters poll had given a mean forecast for revenues of 12.99 billion euros and an adjusted operating profit of 520 million.
Higher deliveries of A320neo jets, which sell at a premium to earlier models, and progress in reducing costs on the larger A350 contributed to the sharp rise in profits. But Airbus still faces snags in producing a longer-range A321 with new cabins.
“Airbus is working to improve execution in its internal industrial systems and monitoring engine performance,” it said in a statement. Engine delays have also weighed on deliveries.
Excluding adjustments, earnings fell 9 percent partly as a result of a row over Germany’s suspension of export licenses to Saudi Arabia and costs for the A380 superjumbo, which Airbus has said it plans to shut down in 2021 due to poor sales.
Airbus suffered a cash outflow of 4.3 billion euros in the quarter as it built inventories but the company is expected to see that reverse course later in the year.
It reaffirmed 2019 targets including positive free cashflow of 4 billion euros and a 15 percent rise in operating profit.
Last week, Airbus’ rival Boeing abandoned its 2019 financial outlook, halted share buybacks and said it had lowered production due to the grounding of its 737 MAX jet after two crashes had cost it at least $1 billion so far.


Key to success is passion: PepsiCo official

“I always think success is married with passion,” Simon Lowden said, adding that he likes to get involved with ideas that excite him
Updated 14 November 2019

Key to success is passion: PepsiCo official

  • Lowden was speaking at a session titled “100 years is a long time: Preparing for multiple shifts.”

RIYADH: The key to success is being passionate about what you do, Simon Lowden, chief sustainability officer at PepsiCo, told a brainstorming session at the Misk Global Forum in Riyadh on Wednesday.

“I always think success is married with passion,” he said, adding that he likes to get involved with ideas that excite him.

“I started my life in a small farming village, went to London to attend university, joined PepsiCo … and now I run our sustainability agenda,” he said. “This made me rich as a person, and I did things I really enjoyed.”

Lowden was speaking at a session titled “100 years is a long time: Preparing for multiple shifts.”

Other panelists included Dave Brooke, vice president of client solutions at Dell Technologies; Kevin Gaskell, an international speaker on leadership and business performance; Deloitte CEO David Sproul; and Nancy Yammout, general director of the NGO Rescue Me. The session was moderated by Lebanese journalist and politician Naufal Daou.