Airbus profits slump on massive space business writedown

31st Jul 2024 09:39

(Sharecast News) - European plane maker Airbus reported a steep fall in second-quarter profit after a massive write down of its space business of almost €1bn.

Adjusted operating profit slumped 56% €814m in the three months to June 30 as it incurred a €989m charge against the space unit - higher than previously forecast last month.

Revenue edged ahead to €16bn as it took on 323 commercial aircraft deliveries.

"The half-year financial performance mainly reflects significant charges in our space business. We are addressing the root causes of these issues," said chief executive Guillaume Faury.

"In commercial aircraft, we are focused on deliveries and preparing the next steps of the ramp-up, while addressing specific supply chain challenges and protecting the sourcing of key work packages."

Airbus is still struggling with shortages of key components, as well as engines from Pratt & Whitney and CFM International, both of which supply its A320 family of jets.

The company said it expected to deliver "around 770" commercial aircraft this year, down from a previous forecast of 800.

It held new financial guidance - released last month - of adjusted operating profit of €5.5bn, down from a previous forecast of as much as €7bn.

Reporting by Frank Prenesti for Sharecast.com