Airbus (OTCPK:EADSY) -0.6% in Paris trading after swinging to a loss in 2019 of €1.36B compared with a net profit of €3.05B a year earlier, as it reported a €3.6B penalty from a corruption probe settlement and €1.2B in charges from its A400M program. The year of loss was also marked with the settlement of $4 billion with prosecutors, over the charges of corrupt practices.
In 2020, Airbus targets around 880 commercial aircraft deliveries and aims to accelerate its operating income to 7.5 billion euros.
Revenue for the fourth quarter increased 4% to 24.31 billion euros ($26.50 billion), beating analysts' expectations of EUR23.33 billion.
Faury called it "a strong underlying financial performance" while acknowledging that "of course we can not be satisfied" with the net loss. But production issues with the European group's own single-aisle A320 jet family may limit its ability to respond.
Airbus played down the potential damage from the virus outbreak now rattling airlines and the broader global economy - endorsing traffic growth forecasts that "assume no major disruptions, including from the coronavirus".
The virus outbreak is still "too recent to be able to understand the magnitude and the consequences", he added.
Airbus' chief executive said Thursday that his company sees no short-term benefit from Boeing's troubles with its grounded 737 MAX because the competing A320 is sold out years ahead. It's targeting free cash flow of 4 billion euros ($4.3 billion), a 500-million-euro increase.
-GOOD 2019: Revenue and closely-watched adjusted earnings before interest and taxes both grew in 2019, a solid performance despite the net loss partly caused by the expected penalty payments that settle allegations of bribery in the US, United Kingdom and France.
Airbus has announced its 2019 financial results. The group said it expected about 2 billion euros in further related losses by mid-decade. Revenue in 2019 rose 11% to EUR70.48 billion.