Airbus SE bounced back strongly into profit in the first half of the year, as aircraft deliveries rose, leading the company to revise its performance forecasts upward, it said yesterday.
Airbus posted a net profit of 2.2 billion euros (US$2.6 billion) for the first six months, compared with a loss of 1.9 billion last year, as the airline industry was walloped by the COVID-19 pandemic.
Airbus said it delivered 297 aircraft from January to last month against 196 last year.
As clients pay most of the cost of the aircraft upon delivery, revenue jumped 30 percent to 24.6 billion euros.
The European plane manufacturer expects to deliver 600 planes this year, instead of the previously estimated 566, the number delivered last year.
It forecasts an adjusted operating profit of 4 billion euros for the year, double its previous target.
“These half-year results reflect the commercial aircraft deliveries, our focus on cost containment and competitiveness, and the good performance in helicopters, and defense and space,” chief executive officer Guillaume Faury said in a statement.
“Although the COVID-19 pandemic continues, the numerous actions taken by the teams have delivered a strong H1 performance. This enables us to raise our 2021 guidance, although we continue to face an unpredictable environment,” he said.
In a sign that the airline sector is still in crisis, the manufacturer recorded only net orders of 38 aircraft in the first half of the year, receiving 127 cancelations.
Its order book stood at 6,925 aircraft as of June 30, including 5,666 of the A320 family, its top-selling, single-aisle plane.
Global air traffic remains severely limited by traffic restrictions and only freight is improving from its pre-pandemic level.
In this area, Airbus is in a weak position compared with its competitor Boeing Co.
The board of directors therefore approved the launch of a cargo version of the wide-body A350, intended to compete with the B767 and B777 cargo plane of the US aircraft manufacturer.
The cargo version of the A350 is expected to enter service in 2025, Faury said.
The plane would be based mostly on the A350-1000, its largest version, he said, and would have a payload of more than 90 tonnes.
The pandemic has accelerated a shift to online shopping, prompting renewed demand for dedicated cargo planes.
The company gets “closer every day” to lining up launch customers, Faury said.
Cash-strapped developer China Evergrande Group (恆大集團) has begun repaying investors in its wealth management products with real estate, said Hengda Real Estate Group Co Ltd (恆大地產), its main unit. Evergrande, with more than US$300 billion in liabilities, is in the throes of a liquidity crisis that has left it racing to raise funds to pay its many lenders and suppliers. It has a bond interest payment of US$83.5 million due on Thursday. The company said on WeChat on Saturday that investors interested in redeeming wealth management products for physical assets should contact their investment consultants or visit local offices. Financial news outlet Caixin on
WORK SUSPENDED: A Taiwanese maker of golf club heads said that it expects the situation to normalize next quarter, thanks to rising vaccination rates in Vietnam Several Taiwanese manufacturers in Vietnam have been struggling with production problems over the past few weeks, as the country’s south remains under a COVID-19 lockdown. Pou Chen Corp (寶成工業), an original design manufacturer for international footwear brands, said that production at its factory in Ho Chi Minh City has ground to a halt, so it expects a significant drop in revenue at that factory from July to last month. If the COVID-19 outbreak in southern Vietnam subsides in the fourth quarter of this year and employees are allowed to return to work, they might be able to put in some overtime,
Medigen Vaccine Biologics Corp’s (高端疫苗) board of directors yesterday approved a proposal to conduct a phase 3 clinical trial of its COVID-19 vaccine in Europe, it said yesterday. The final stage of human tests, if approved by the European Medicines Agency (EMA), would mark a big milestone in the COVID-19 vaccine development of Medigen, which has so far completed phase 1 and 2 clinical trials in Taiwan and is conducting a small phase 3 clinical trial in Paraguay. Medigen in July consulted the EMA about conducting clinicial trials of its vaccine and it received a “positive response” from the agency, the company
‘CORE VALUES’: The contract chipmaker did not specify why the employees were dismissed, but media reports said they had leaked information about customer orders Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has fired seven of its employees for violating the company’s “core values,” the world’s largest contract chipmaker said yesterday. While the company did not disclose exactly why it fired the seven employees, local media reports earlier in the day said that the employees had leaked confidential information about customer orders. In a statement, the company said that it fired the seven at once, adding that it released an internal notice last week to inform the entire company of the move ahead of the four-day Mid-Autumn Festival holilday, which ended on Tuesday. TSMC said it fired the seven