(News Bulletin 247) – The former EADS has delivered its forecasts for 2023, anticipating 720 aircraft deliveries, its initial target for 2022.

After a 2022 financial year marked by difficulties in its supply chain, Airbus will try to move forward this year. But the group is showing some caution for the moment in its forecasts.

The former EADS has unveiled its projections for the 2023 financial year, and thus intends to deliver 720 planes this year, against 661 last year. This target of 720 planes corresponds to the target the company initially set last year before reducing it and then abandoning it in December.

Airbus also plans to generate adjusted operating profit (EBIT), a key measure of the group’s profitability, of 6 billion euros and generate cash flow before mergers and acquisitions and customer financing of 3 billion euros.

For Jefferies, this outlook is “weak on cash” but “reassuring” on adjusted EBIT.

“In 2023, we will focus on our industrial activities and on the longer-term transformation of the company. The solid financial performance of 2022 and our confidence in the future lead us to propose the payment of a higher dividend this year. high”, said Guillaume Faury, the executive chairman of Airbus quoted in a press release. The group proposes to pay a dividend of 1.8 euros per share for 2022 compared to 1.5 euros for 2021.

Result above expectations

The group delivered these forecasts while its fourth quarter results proved to be above analysts’ expectations.

Over the period from October to December, Airbus saw its turnover stand at 20.64 billion euros against 17 billion over the same period of 2021. The group benefited in particular from higher aircraft deliveries to that of the same period of the previous financial year, with 226 units compared to 187 in the fourth quarter of 2021.

Adjusted Ebit increased by 43% to 2.15 billion euros while net profit was 1.68 billion euros, up 6%.

Cash flow before customer financing and external growth operation reached 1.781 billion euros.

According to a consensus available on the company’s website, analysts expected revenue of 20.44 billion euros, adjusted Ebit of 1.947 billion euros, net profit of 1.33 billion euros and free cash generation of 1.58 billion euros.

Jefferies evokes “a good performance” in the last quarter of 2022, and particularly appreciates the good surprise on adjusted Ebit.

Slightly delayed ramp-ups

Over the whole of 2022, Airbus saw its turnover increase by 13% to 58.73 billion euros, while its adjusted Ebit increased by 16% to 5.63 billion euros. Net profit increased by 1% to 4.25 billion euros, thus exceeding its 2021 record. Its rival Boeing had shown a net loss of nearly 5 billion dollars for 2022.

Cash flow before customer financing and external growth operation stood at 4.68 billion euros compared to 3.52 billion euros in 2021.

Regarding the ramp-up of its single-aisle production, Airbus announced that it now intends to reach a production rate for A320 family aircraft, its blockbuster, of 65 units per month by the end of 2024 before reaching a rate of 75 in 2026.

It is therefore proving to be a little more cautious about this ramp-up, since it was previously counting on a rate of 65 aircraft during 2024 and 75 aircraft in the “mid-decade”.

For widebody aircraft, the company plans to ramp up production from three A330s per month currently to four in 2024, and from six A350s to currently nine by the end of 2025.

The aircraft manufacturer also announced on Wednesday evening that it had chosen Thomas Toepfer to succeed Dominik Asam as chief financial officer. Thomas Toepfer is currently chief financial officer of the German chemical group Covestro, a position he has held since 2018. He will join Airbus next September while Dominik Asam will leave the company on March 3. In the meantime, the interim will be provided by Xavier Tardy, in charge of Finance for the space and military division of Airbus.