Airbus attributes 63% drop to foreign exchange rates

Airbus attributes 63% drop to foreign exchange rates

Net profits at Airbus fell last year by 63% to €995 million, as revenue edged up 3% to €67 billion.

The European aircraft manufacturer citied negative foreign exchange effects as “significantly impacting” the results.

Commercial aircraft orders declined from 1,080 in 2015 to 731 while the backlog reached a record 6,874 at the end of 2016.

Deliveries of commercial aircraft increased from 635 to a record 688 as revenues for the division rose by 7%.

Commercial aircraft earnings [EBIT] increased to €2.8 billion from €2.7 billion the previous year, helped by higher volumes of short haul A320s and a 21% decline in research and development costs

Chief executive, Tom Enders, said: “We have delivered on the commitments that we gave a year ago and achieved our guidance and objectives, with one exception, the A400M [military aircraft], where we had to take another significant charge totalling €2.2 billion in 2016.

“De-risking the programme and strengthening programme execution are our top priorities for this aircraft in 2017.”

He added: “The record order backlog is supporting the ramp-up plans and our performance in 2016 shows we can deliver on that.

“We successfully managed the ramp-up of the single-aisle and A350 programmes while at the same time transitioning to the more efficient version of the A320.”

Comments

This is a community-moderated forum.
All post are the individual views of the respective commenter and are not the expressed views of Travel Weekly.
By posting your comments you agree to accept our Terms & Conditions.

More in air