Engineering news
Airbus has reported a 59% rise in net income to €2.34 billion despite setting aside €551m for delays on its A400M military aircraft.
The French firm said group revenues increased 5% to a record €60.7 billion. Sales of commercial aircraft revenues rose 7%, driven by the increase in deliveries to a record 629 aircraft, and a "more favourable delivery mix" including 30 A380s compared to 25 in 2013. Revenues in its helicopters business rose 4%, mainly driven by government programmes including the ramp-up in NH90 activity. Helicopter stood at 471 units, compared with 497 units a year earlier. Defence and Space’s revenues were broadly stable, with eight A400M deliveries and six Ariane 5 launches during the year.
Airbus said it would increase production of its smaller single aisle A320 to 50 a month in 2017, but will cut production of its wide-body A330 to six a month from its current level of 10 a month due to falling demand.
Demand for the A330 is slowing as Airbus starts taking orders for a new-engine version of the aircraft that it will begin delivering at the end of 2017.
Tom Enders, chief executive, said: “We achieved a significant improvement in profitability and cash generation in 2014 thanks to a record order book and strong operational performance in most areas.
“We delivered more commercial aircraft than ever before, including the first A350, and our net orders were, once again, more than twice the number of deliveries. Due to strong demand for single aisle aircraft we have decided to increase production of our A320 family to 50 aircraft per month from 2017 onwards. At the same time, we have decided to temporarily reduce A330 production to six aircraft per month in 2016. Most importantly, we confirm the A380 break-even for 2015.
“We are focused on tackling our various operational challenges, including the A350 and A400M ramp-up and costs, first A320neo deliveries, boosting helicopter sales, and continuing the reshaping of our defence and space portfolio.”
Shares in Airbus rose 6.85% to €54.92 on the Paris stock exchange following the results announcement.
Airbus Group employs a workforce of about 138,600.