By Robert Wall
LONDON-- Airbus Group NV on Thursday reported a rise in
first-quarter earnings bolstered by the sale of a stake in French
combat jet maker Dassault Aviation SA, even as the underlying
business began 2015 slowly.
Net income for the period was EUR792 million ($880 million)
compared with EUR439 million a year earlier, the Toulouse-based
plane maker said in a statement.
The company's earnings in the period were boosted by a EUR697
million net gain from the sale of a 17.5% stake in Dassault
Aviation, it said.
"We had a good start into 2015, with a solid operational
performance and improved cash generation, further supported by
asset sales," Chief Executive Tom Enders said.
Sales declined 4% to EUR12.1 billion, the world's second-largest
maker of commercial jetliners said. Airbus delivered 134 jets in
the first three months of the year compared with 141 in the year
prior period. Sales should rebound with deliveries of commercial
jetliners weighted toward the second half as Airbus targets more
plane shipments this year than last.
The European plane maker's closely watched earnings before
interest and taxes excluding some one-time items retreated 7% to
EUR651 million.
Earnings at the key commercial jetliner unit rose 8% to EUR569
million before one-time items.
Airbus's helicopter division reported a 10% fall in earnings as
widely expected because of the mix of rotorcraft delivered. The
company said a cost reduction plan limited the retrenchment. The
defense and space unit's earnings rose EUR5 million to EUR90
million.
CEO Mr. Enders said the company remains on track to meet
full-year targets. That includes meeting a long-promised commitment
t start delivering A380 superjumbos from this year which no longer
lose money.
The Dassault Aviation transaction also lifted free cash flow to
EUR452 million after a EUR2.1 billion outflow in the year-ago
period.
Airbus last year announced plans to unload its stake in Dassault
Aviation inherited at the time the Franco-German aerospace company
was created. Airbus still owns around 23% of Dassault's shares.
"We will review capital allocation towards the end of the year,"
Mr. Enders said. Airbus next month will seek shareholder approval
to buy back an extra 10% of its stock in addition to the regular
approval for a similar amount.
Airbus has promised investors it will try to improve cash
generation and on Thursday confirmed its target of reaching
break-even on that measure excluding mergers and acquisitions.
Stripping out the Dassault Aviation transaction, Airbus would have
had a EUR1.1 cash outflow in the first quarter.
Write to Robert Wall at robert.wall@wsj.com
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