Boeing competitor's profit stalls on super jumbo costs
PARIS (AP) - The cost of fixing problems on some A380 super jumbos weighed on third-quarter profits at Airbus parent company EADS NV.
Net profit at the European aircraft giant fell 1 percent to €309 million ($394 million) in the July to September period, from €312 million a year earlier.
EADS, which is the Boeing Co.'s biggest competitor, said Thursday it has spent €200 million of an expected €260 million total on the A380 repairs, which involve small fractures found near the rivets used to join a metal cover to the aircraft wings' ribs.
Sales in the quarter rose 15 percent to €12.3 billion, and the company says it is on track to exceed its target of 10 percent sales growth for the full year.
Airbus' new A350, intended to challenge Boeing's 787 "Dreamliner," was delayed by several months until the second half of 2014, the company said in July. EADS says that is still its target, but warned that the "program remains challenging."
The A350 is delayed because the company needs to finish putting in place an automated drilling process for the plane's wings. Airbus has already taken a €124 million charge as a result, and warned that further delays would lead to greater charges.
Airbus said it is on track to deliver 580 commercial aircraft this year, including 30 A380s, up from 534 total aircraft deliveries last year. Airbus also forecast between 600 and 650 gross orders this year.
Through the first nine months of the year, Airbus delivered 403 aircraft and took in net orders for another 382 - down from the 1,038 orders it had booked at the same point a year earlier, as the global economic slowdown has weighed on carriers' expansion plans.
EADS shares were down 1.5 percent to €8.35 following the report.
Last month, talks on a potential $45 billion merger between EADS and Britain's BAE Systems collapsed after government objections in Germany, Britain and France.
Net profit at the European aircraft giant fell 1 percent to €309 million ($394 million) in the July to September period, from €312 million a year earlier.
EADS, which is the Boeing Co.'s biggest competitor, said Thursday it has spent €200 million of an expected €260 million total on the A380 repairs, which involve small fractures found near the rivets used to join a metal cover to the aircraft wings' ribs.
Sales in the quarter rose 15 percent to €12.3 billion, and the company says it is on track to exceed its target of 10 percent sales growth for the full year.
Airbus' new A350, intended to challenge Boeing's 787 "Dreamliner," was delayed by several months until the second half of 2014, the company said in July. EADS says that is still its target, but warned that the "program remains challenging."
The A350 is delayed because the company needs to finish putting in place an automated drilling process for the plane's wings. Airbus has already taken a €124 million charge as a result, and warned that further delays would lead to greater charges.
Airbus said it is on track to deliver 580 commercial aircraft this year, including 30 A380s, up from 534 total aircraft deliveries last year. Airbus also forecast between 600 and 650 gross orders this year.
Through the first nine months of the year, Airbus delivered 403 aircraft and took in net orders for another 382 - down from the 1,038 orders it had booked at the same point a year earlier, as the global economic slowdown has weighed on carriers' expansion plans.
EADS shares were down 1.5 percent to €8.35 following the report.
Last month, talks on a potential $45 billion merger between EADS and Britain's BAE Systems collapsed after government objections in Germany, Britain and France.
EADS strikes me as the same colossal mess as the Euro mess. Their attempt to copy the Boeing 787 will cost them much more than they are figuring on and will have many more delays than Boeing had. Building something from the ground up is a huge task and the costs are also huge. With several Europe countries on the verge of failing they should stick with what they have and make better. The A-380 is another screw-up that will cost them already. Do they need more. I have yet to be impressed with their products.
Boo Airbutts
Building complicated new airplanes is tough... Who knew?
Airbus is extremely capable - this is an unfortunate (for them) bump in the road. They have a fantastic product line-up in the A320/A330/A350/A380. Boeing has a fantastic lineup in the 737/787/777/747 lineup, though a little weaker than Airbus'. In the end, it's a duopoly. Before we get all high and mighty about this earnings report, keep in mind that the 747-8 and 787 programs together have been a tremendous financial and human resources drain on Boeing. It'd be a great time to not cast aspersions at what has become the worlds largest aircraft manufacturer.
Can you hear the EU screaming that Boeing is doing something illegal.....123
So their profit is pretty much one A380? That's not much considering they deliver over 500 aircraft per year...Â
 @Komo Dragon well.....when the airbus deliveries are mostly the narrowbody aircraft, & they're selling the narrowbody aircraft [A319-A320-A321] at 50% or more under cost to produce-it's no wonder their profit is $400 million or sothe warnings about further costs & delays to both the A380 as well as the A350 program are telling-i wouldn't be surprised if early next year airbus announces another delay to the A350 [or another $150 million charge for the A380 wing problems]
Not seeing much anywhere about the Boeing layoffs. It's nice to hear their competition is struggling as well though.
@Elvis re boeing layoffs- http://www.cnbc.com/id/49729998
They thought they are taking the sky....look now they have huge problem as well !