A new charge of 200 million euros ($214.62 million) in its troubled Space unit dampened the cheers of record airplane orders and higher deliveries, but Europe’s Airbus announced a special dividend on Thursday.
The biggest commercial aircraft manufacturer in the world reported that core adjusted operating profit increased by 4% to 5.8 billion euros while increased by 11% to 65.4 billion euros. Core profit was projected to reach 6.5 to 7.0 billion euros in 2024.
As net cash exceeded the 10-billion-euro threshold that was previously identified as a potential trigger for returning cash to shareholders, Airbus proposed an unchanged regular dividend of 1.8 euros per share and added a special dividend of 1 euro per share.
Unlike US rival Boeing (NYSE:BA), which is beset by debt from a string of crises, Airbus is riding a wave of orders from airlines dealing with a rebound in travel demand brought on by the pandemic. This has allowed Airbus to accumulate cash reserves.
As predicted, Airbus projected 800 jet deliveries in 2024; however, it also revealed an additional postponement of the A321XLR single-aisle jet’s entry into service, originally scheduled for the second quarter, to the third. December marked the final assembly of the first customer aircraft.
If tight global supply chains or the global economy continue to remain stable, the company’s forecasts remain subject.
The charge for the Space unit brings the total amount written off in that segment to 600 million euros. This news was broken a day after Reuters revealed that Guillaume Faury, the CEO, had informed employees that such charges were “not acceptable” in the company.
According to a recent internal memo from Faury, Space Systems chief Jean-Marc Nasr is leaving his job effective next month because “it is what it is,” as Reuters reported on Wednesday. Nasr was unavailable for comment.
The charges contributed to a 40% decline in divisional Defense and Space profits to 229 million euros, while helicopter profits increased by 15%.
The United States launchers and a new wave of affordable satellites are major competitors for European companies like Airbus.
In contrast, Faury informed employees last month via letter that Airbus is better off having a strong Defense and Space division than not having one.
$1 is equivalent to 0.9319 euros.