Airbus: COVID-19 impact 'very visible' in 2Q2020, aiming not to consume cash in 2H2020
Airbus CEO Guillaume Faury stated (30-Jul-2020) the impact of the COVID-19 pandemic was "very visible" in the company's financial results for 2Q2020, noting commercial aircraft deliveries for 1H2020 halved year-on-year. Mr Faury added: "It is our ambition to not consume cash before M&A and customer financing" in 2H2020. Details include:
- Consolidated revenues decreased 38.8% year-on-year to EUR18.9 billion in 1H2020, driven by the difficult market environment impacting the commercial aircraft business. This was partially offset by more favourable foreign exchange rates;
- Adjusted EBIT was a loss of EUR1307 million, compared to positive earnings of EUR2193 million in 1H2019. The result mainly reflects reduced commercial aircraft deliveries and lower cost efficiency, and includes negative earnings of EUR900 million in COVID-19 related charges. The company implemented steps to adapt its cost structure to the new levels of production and stated: "the benefits... are materialising as the plan is executed".
Mr Faury said: "We have calibrated the business to face the new market environment on an industrial basis and the supply chain is now working in line with the new plan". He added: "We face a difficult situation with uncertainty ahead, but with the decisions we have taken, we believe we are adequately positioned to navigate these challenging times in our industry". [more - original PR]