Airbus forced to write off almost a billion dollars
Even though the problems that Boeing has been driving its customers to Airbus, Airbus yesterday revealed that its own business outlook is presently suffering, forcing it to write off $965 million.
Yielding to growing scepticism among suppliers over its plans for jet output, Airbus lowered its widely watched forecast for deliveries this year to around 770 jets from around 800. It also tempered plans to raise output of its best-selling A320neo family, by delaying the date at which it expects to reach a record production speed of 75 jets a month to 2027 from 2026. That compares with an estimated 50 jets a month now.
As a result of the lower delivery forecasts, which imply annual growth of 5% instead of 9%, Airbus lowered its main financial targets for 2024. It now expects underlying operating income of around 5.5 billion euros, instead of a range of 6.5 billion to 7.0 billion, and free cashflow of 3.5 billion instead of 4.0 billion.
The article focuses on Airbus’s engine supply issues that are restricting its ability to build jets. It makes no mention of the company’s joint partnership with Safran to build the Ariane-6 rocket, which has failed to garner the business predicted, even as it is about to make its inaugural launch on July 9th. Though peripheral to the airplane issues described, it is certainly a factor in these financial issues.
On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.
The print edition can be purchased at Amazon. from any other book seller, or direct from my ebook publisher, ebookit.
The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.
The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News
Even though the problems that Boeing has been driving its customers to Airbus, Airbus yesterday revealed that its own business outlook is presently suffering, forcing it to write off $965 million.
Yielding to growing scepticism among suppliers over its plans for jet output, Airbus lowered its widely watched forecast for deliveries this year to around 770 jets from around 800. It also tempered plans to raise output of its best-selling A320neo family, by delaying the date at which it expects to reach a record production speed of 75 jets a month to 2027 from 2026. That compares with an estimated 50 jets a month now.
As a result of the lower delivery forecasts, which imply annual growth of 5% instead of 9%, Airbus lowered its main financial targets for 2024. It now expects underlying operating income of around 5.5 billion euros, instead of a range of 6.5 billion to 7.0 billion, and free cashflow of 3.5 billion instead of 4.0 billion.
The article focuses on Airbus’s engine supply issues that are restricting its ability to build jets. It makes no mention of the company’s joint partnership with Safran to build the Ariane-6 rocket, which has failed to garner the business predicted, even as it is about to make its inaugural launch on July 9th. Though peripheral to the airplane issues described, it is certainly a factor in these financial issues.
On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.
The print edition can be purchased at Amazon. from any other book seller, or direct from my ebook publisher, ebookit. The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.
The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News
The 900 million Euro write-off is not related to either jet airliner production or the Ariane 6. It’s reportedly entirely due to the telecom / navigation satellite unit. That unit also had a 600 million Euro write-off at the end of last year.
Airbus has won *a lot* of telecom satellite orders the last six or so years at the expense of Boeing and Space Systems Loral. It now appears that they did so by selling those satellites at a loss.