A surge in Airbus passenger jet deliveries helped European Aeronautic Defence & Space post a 47 percent rise in second-quarter net profit...
PARIS — A surge in Airbus passenger jet deliveries helped European Aeronautic Defence & Space post a 47 percent rise in second-quarter net profit yesterday, but the company left its full-year earnings guidance unchanged.
EADS said net profit rose to 488 million euros ($585 million) in the April-June quarter from 332 million euros a year earlier.
The closely watched earnings before interest and taxes, or EBIT, before goodwill impairment and exceptional items, rose 13 percent to 883 million euros ($1.06 billion).
Revenue increased 6 percent to 9.02 billion euros ($10.8 billion). Both profit and revenue were ahead of market expectations. Airbus delivered 102 planes in the second quarter, eight more than in the corresponding 2004 quarter.
Most Read Stories
- Arrest of black teen in Wallingford sets off social-media storm
- Huskies not only should be in playoffs, they should be in Fiesta Bowl
- Snow is on way to Western Washington lowlands, weather service says
- FAA orders Boeing 787 safety fix: Reboot power once in a while
- Fed up with Seattle? Here's where you can go
Revenue is seen at 33 billion euros ($39.6 billion), up from 31.8 billion euros in 2004, with Airbus expected to deliver 360 planes — 40 more than last year — outdelivering rival Boeing for the third straight year. EADS owns 80 percent of Airbus, and Britain’s BAE Systems owns the rest.
Airbus, which accounts for the bulk of EADS’ earnings, posted an 8 percent increase in EBIT before goodwill and exceptional items to 816 million euros ($978 million).
EADS said profits in the second half of 2005 are likely to be constrained by less-favorable hedging rates for the dollar — the currency in which Airbus jets are billed — and higher research and development costs for the freighter version of its A380 “superjumbo.”
Boeing is likely to come out ahead in new orders booked for the full year, EADS Chief Financial Officer Hans Peter Ring said on a conference call with analysts yesterday.
“I’d expect us to have between 40 percent and 50 percent market share” for new commercial-aircraft orders booked by the end of 2005, Ring said.
Boeing has been “pricing very aggressively” to win new orders, not just for its new 787 but for other planes as well, he said.
Material from Bloomberg News is included in this report.