Airbus earns less than expected, plans special dividend

FRANKFURT (Dow Jones) – Airbus increased sales and profits in the fourth quarter, but earned less than the market expected. While the annual forecast for cash flow was significantly exceeded, the operating result remained below it. However, the European aerospace group expects further growth for the current year and wants to deliver more aircraft. In addition to a dividend at the previous year’s level of EUR 1.80 per share, shareholders can look forward to a special dividend of EUR 1.00 per share.

“Our dividend proposals reflect the strong financial results for 2023, our growth prospects for 2024 and the strength of our balance sheet,” CEO Guillaume Faury said, according to the release.

In the period from October to December, sales rose by 11 percent to 22.9 billion euros, Airbus announced. Adjusted earnings before interest and taxes (Adjusted EBIT) increased by 3 percent to 2.21 billion euros. The bottom line was a net profit after taxes and third parties of 1.46 billion, which corresponded to a decline of 13 percent. Airbus earned 1.85 euros per share after 2.13 euros in the same period last year.

Analysts had unanimously expected sales of 22.5 billion euros, an adjusted EBIT of 2.27 billion euros and a net profit after taxes and third parties of 1.59 billion euros. They saw earnings per share at 2.02 euros.

Airbus plans to hand over 800 aircraft to customers this year; last year there were 735 aircraft. The group wants to increase adjusted EBIT to 6.5 to 7.0 billion euros, from 5.84 billion euros last year. In terms of free cash flow (FCF) before mergers and acquisitions (M&A) and customer financing, Airbus is targeting around 4.0 billion euros, a decrease from 4.39 billion in 2023.

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DJG/sha/kla

(END) Dow Jones Newswires

February 15, 2024 00:52 ET (05:52 GMT)

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