Wednesday, 26 February, 2020

Airbus ends 2019 with $1.4 billion loss after corruption charges

Airbus pledges profit gain after bribery settlement hit Airbus ends 2019 with $1.4 billion loss after corruption charges
Ginger Lawrence | 14 February, 2020, 01:11

He made the remarks at the company's earnings news conference after it reported a loss of 1.36 billion euros ($1.48 billion) in 2019 because of a multibillion-euro bribery settlement with authorities in three countries. The year of loss was also marked with the settlement of $4 billion with prosecutors, over the charges of corrupt practices. Revenue increased 11 per cent to €70.478 billion.

Airbus turned in a "strong underlying financial performance", Chief Executive Guillaume Faury said, and will focus this year on operational and cost improvements as well as "reinforcing our company culture".

For 2020, Airbus expects to deliver a record ~880 commercial aircraft, up from 863 in 2019, and targets free cash flow of €4B, up from €3.5B in the previous year.

China virus toll surges on switch to new methodology
According to the ship's operator, Holland America, none of the 1,400 passengers and 800 crew members were infected with the virus. The online newspaper VN Express cited a senior official of Vinh Phuc province as reporting an increase in cases in Son Loi.

The company also lost 1.2 billion euros (£1 billion) because of troubles with its A400M military transport programme and 221 million euros (185 million) because the German government suspended export licences to Saudi Arabia through March. Airbus would first need to address the problems with the production of their A320 single-aisle family of passenger aircraft, however, with no plans of significantly increasing the production rates compared to their monthly goal of 63 aircraft for the next year.

Airbus played down the potential damage from the virus outbreak now rattling airlines and the broader global economy - endorsing traffic growth forecasts that "assume no major disruptions, including from the coronavirus". Quarterly revenue rose 4 per cent to €24.31 billion.

For the fourth quarter, adjusted operating income fell 9 per cent to €2.8 billion, ahead of the €2.74 billion expected by analysts, according to an Airbus consensus poll.