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Airbus Overall Performance
Airbus SE reported solid financial results (https://www.airbus.com/sites/g/files/jlcbta136/files/2024-10/Press-Release-Airbus-9m2024-1459.pdf) for the nine months ended September 30, 2024, driven by increased aircraft deliveries and strong performance in Airbus Helicopters and Air Power businesses. However, challenges in Space Systems and supply chain disruptions, particularly in titanium sourcing from Russia, continue to require proactive management.
Source: Q3 2024 Financial Statements (https://www.airbus.com/sites/g/files/jlcbta136/files/2024-10/Airbus_Notes_9m%2024-1624.pdf)
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Key Financial Highlights: (https://www.airbus.com/sites/g/files/jlcbta136/files/2024-10/Airbus_9m_2024_FINAL-for%20publication.pdf)
* Revenue: Increased by €1,954 million to €44,514 million compared to the same period in 2023, primarily due to higher aircraft deliveries (497 compared to 488 in the first nine months of 2023).
* Gross Margin: Increased by €72 million to €6,640 million compared to the first nine months of 2023, mainly driven by higher commercial aircraft volume and a positive foreign exchange impact.
* Profit before financial result and income taxes (EBIT): Reached €2,690 million, showcasing profitability across segments except Airbus Defence and Space.
* Net Income: Decreased to €1,808 million compared to €2,332 million in the first nine months of 2023, impacted by charges related to Space Systems programmes and an increased effective income tax rate.
* Earnings per Share: Basic and diluted earnings per share decreased to €2.29 compared to €2.96 in the same period last year.
* Net Cash Position: Decreased to €7,163 million compared to €10,726 million at December 31, 2023, mainly due to capital expenditures, investments in securities, and dividend payments.
Segment Performance:
* Airbus: Continued strong performance with increased revenue and EBIT, driven by higher aircraft deliveries and a ramp-up towards the target production rate of 75 A320 Family aircraft per month in 2027.
* Airbus Helicopters: Demonstrated positive performance with revenue growth and a good performance in services.
* Airbus Defence and Space: Faced challenges with a negative EBIT due to a significant charge of €-989 million related to updated cost and schedule assumptions for certain Space Systems programmes. Organisational changes and workforce adjustments are planned to address these challenges.
Key Developments:
* Acquisitions: Acquired the remaining 50% stake in Airbus OneWeb Satellites, obtaining full control.
* Finalized the acquisition of Aerovel, a Flexrotor maker specializing in small tactical unmanned aerial systems.
* Acquired Infodas, a German cybersecurity and IT solutions provider.
* Entered into a binding term sheet agreement with Spirit AeroSystems for potential acquisition of major activities related to Airbus aircraft production.
* Divestments: The Company continues to progress with the planned divestiture of a subsidiary, expected to close in 2025.
* Supply Chain De-risking: The company is implementing a de-risking plan to mitigate potential disruptions in titanium supply due to the war in Ukraine and has successfully avoided production disruptions in the first nine months of 2024.
* Climate Impacts: Airbus remains committed to its sustainability goals, including achieving net-zero carbon emissions by 2050. The company has identified “Use of sold products” as a highly material Scope 3 emissions category and is implementing five strategic pathways to address its carbon footprint.
* Litigation and Claims: Ongoing legal proceedings include securities litigation related to previous criminal investigations and a dispute with the Norwegian Defence Materiel Agency over the termination of a contract for NH90 helicopters.
Forward-Looking Statements:
* Airbus is focused on ramping up production rates for the A320 and A220 families, while stabilizing A330 production and managing supply chain challenges for the A350 ramp-up.
* The company is actively managing risks and costs associated with certain Space Systems programmes and implementing organizational changes within Airbus Defence and Space to improve efficiency and profitability.
* Airbus remains committed to its sustainability goals and is investing in technologies and partnerships to reduce its environmental impact.
Quotes:
* Regarding the A320 Family ramp-up: “The Company continues to ramp up towards a rate of 75 A320 Family aircraft per month in 2027.”
* On the impact of the war in Ukraine: “The war in Ukraine has increased the Company’s exposure to supply chain disruption risk given that part of the titanium used by the Company is sourced from Russia, both directly and indirectly through the Company’s suppliers.”
* Addressing climate change: “CO2 emissions from commercial aircraft in operation appear to be the most material category. In order to a…
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