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Boeing beats Airbus’ third quarter performance
October 28th 2016
U.S. manufacturer Boeing outperformed European aircraft maker Airbus by a wide margin in the third quarter. Read More »
As such, the Boeing Company reported a $2.28 billion consolidated net profit through to September 30, up 34% year-on-year. Concurrently, the Chicago-headquartered OEM increased its 2016 revenue guidance by $500 million to between $93.5-95.5 billion, based on higher commercial deliveries, despite Boeing Commercial Airplanes’ third quarter revenues being down 4.1% to $17 billion, and the division’s operating profit dropping 9.7% to $1.6 billion.
“Solid operating performance across our commercial and defense and space businesses in the third quarter … generated strong cash flow for Boeing,” said Boeing president and CEO, Dennis Muilenburg. “We also captured key orders, reinforcing the strength of our large and diverse order backlog.”
Through to September 30, Boeing Commercial Airplanes delivered 188 aircraft, down from the 199 delivered in the corresponding year-ago period, and it received 107 new net orders, raising its total backlog to more than 5,600 aircraft valued at approximately $410 billion.
Muilenburg said his team “achieved key milestones on the 737 MAX, 787-10 and other development programs, including the first KC-46 production contracts,” during the quarter, in addition to having started production of the first MAX 9 and the 500th Dreamliner.
Over at Airbus in Toulouse, the Europeans can only dream of their American rival’s performance after Airbus again took a significant hit from its aerospace and defence division.
Airbus Group recorded a third-quarter net profit of €50 million ($56 million), a steep 87% year-on-year decline achieved on total group revenues of €14 billion, down 1%.
Airbus’ commercial airplanes unit actually did not do too badly. The commercial department increased its quarterly revenues 4% year-on-year to €10.5 billion, resulting in an 18% EBIT drop to €568 million (the unit did not release a net profit figure).
Airbus maintained its full-year earnings guidance matching 2015 levels as it increases spending to achieve 50 A350 deliveries this year, after handing over 26 XWBs to-date only.
“For the remaining months of the year we remain totally focused on deliveries to achieve our earnings and cash guidance,” said Airbus Group CEO, Tom Enders.
The Airbus boss is currently simplifying the manufacturer’s management structure, and he is poised to announce at least 500 job cuts as the firm scales back A380 superjumbo production and responds to declining helicopter sales.
Airbus’ total backlog stands at 6,700 aircraft, larger than Boeing’s, although the U.S. rival holds more widebody contracts than Airbus. Over the first nine months of the year, Airbus received 380 net commercial aircraft orders, a significant slump on last year’s nine-month tally of 815.
