Airbus reported higher revenues, earnings, and commercial aircraft and helicopter deliveries in the first half of 2019 compared to the year-ago period, but a sharp decline in orders. “The half-year financial performance mainly reflects the ramp-up in production of A320 family aircraft and transition to the more efficient Neo version, as well as further progress on the A350 financial performance,” said Airbus CEO Guillaume Faury.
Airbus delivered 389 commercial aircraft and 143 helicopters in this year's first half compared with 303 and 141, respectively, in the same period last year, but new orders for both plunged for the period from the year-ago period: 213 commercial aircraft gross orders compared to 261 and 88 net orders compared to 206. Airbus tallied 123 helicopter orders compared to 143 in H1 2018. A320neo family aircraft continue to dominate but new aircraft deliveries and orders, comprising 234 of the 294 A320 aircraft delivered in H1 2019. Minus the A320 deliveries in H1 2019, Airbus delivered 21 A220s, 17 A330s, 53 A350s and 4 A380s. Helicopter orders included 23 NH90 military helicopters for Spain and 11 H145 twins. Nevertheless, despite the order drop, Airbus’s backlog stands at a healthy 7,276 aircraft as of June 30.
Earnings per share more than doubled to $1.71 from $0.71. The company reported that consolidated revenues increased to $34.4 billion (H1 2018: $27.8 billion), mainly reflecting higher commercial aircraft deliveries and favorable foreign exchange, while earnings before interest and taxes (EBIT) rose to $2.82 billion (H1 2018: $1.29 billion). Unwinding the A380 program continues to account for charges to the bottom line, some $151 million to date of which $83.5 million were booked in the 1H 2019. Other profit drags included a $231.5 million charge related to the suspension of German export licenses to Saudi Arabia, of which $20 million was booked in Q2 2019. Earnings from the company’s helicopter and defense units also declined for the period, helicopters dropping to $139 million from $150 million and space and defense falling to $248 million from $344 million. R&D spending increased slightly to $1.59 billion from $1.56 billion.
Airbus, Leonardo, and Bell see signs of hope for the months ahead, the companies reported recently. Though Airbus Helicopters reported marginally higher year-over-year deliveries in the first half, the company still saw declines in revenues, earnings, and orders, parent company Airbus Group announced in late July. First-half revenues at the helicopter division fell 1 percent from a year ago, to €2.371 billion ($2.643 billion).
Meanwhile, Airbus Helicopters' earnings in the first six months slid by 7 percent from first-half 2018, to €125 million ($139.35 million), reflecting a less favorable delivery mix that was partially offset by an increased contribution from services, it said.
The company delivered 143 helicopters in the first six months, up from 141 in the same period last year, while new orders dropped to 123 units, down 20 from a year ago. Despite the 14 percent decrease in orders during this period, Airbus’s backlog stands at 7,276 aircraft as of June 30. Helicopter orders logged in the second quarter include 23 NH90 military helicopters for Spain and 11 H145 twins.
Driven by its defense and helicopter sectors, Leonardo posted solid order gains in the first half of 2019. New orders for the period amounted to $6.8 billion (€6.145 billion), an increase of 34 percent from the year-ago period, while backlog increased 11.4 percent to $40.2 billion (€36.321 billion).
Revenues increased by 7 percent to $6.6 billion (€5.962 billion), while EBIT (earnings before interest and taxes) surged by 92.5 percent to $511.5 million (€462 million). Net income more than tripled to $386.4 million (€349 million). Group net debt also increased to $4.54 billion (€4.098 billion), compared with $3.84 billion (€3.474 billion) from the first half of 2018.
Leonardo CEO Alessandro Profumo said the first-half results are “in line with expectations and we have achieved a strong commercial performance in both domestic and international markets."
Bell saw its revenue and profit slip on lower military volume and slightly fewer commercial helicopter deliveries in the second quarter of 2019, parent company Textron Inc. reported in mid-July. The Fort Worth, Texas-based manufacturer delivered 53 commercial helicopters in the three-month period—four fewer than in the year-ago quarter—partly contributing to a 7 percent decline in revenue, to $771 million, and a $14 million drop in profit.
Textron CEO Scott Donnelly said he expects improvement in commercial helicopters in the third quarter as manufacturing increases to meet demand. “Despite the lower commercial deliveries in the quarter, we expect to see a ramp in deliveries in the second half of the year supported by continued strong order activity and increased production rates,” he explained. “The demand is there. The orders are there. It’s been a matter of getting production up and delivering at a higher rate, and that’s where we are now.”
Backlog at the end of the second quarter was $6 billion, down slightly from $6.3 billion at the end of March, but up $500 million from second-quarter 2018.