Wednesday, December 10, 2014

Airbus unscrews for trading on disappointing forecasts – Boursorama

Airbus unscrews for trading on disappointing forecasts – Boursorama

AIRBUS unscrewed EXCHANGE

AIRBUS unscrewed EXCHANGE

PARIS (Reuters) – Airbus Group plunged on the stock market on Wednesday due to the disappointment forecasts provided to investors by the parent company of Airbus for the future

The aerospace and defense group said. anticipate an operating profit before exceptional stability in 2016 compared to 2015, against a growth of over 8% anticipated by the consensus Thomson Reuters I / B / E / S.

At the Global Investor Forum the group held in London and broadcast on the internet, CFO Harald Wilhelm has also estimated that the Airbus Group cash flow is expected to show a deficit in 2015.

He has raised the cost of development of the new long-haul A350, the Delivery of the first scheduled for Saturday at Qatar Airways has been postponed to an undisclosed date probably by the end of the month.

The stock has lost 10 42% to 43.175 euros after a low of 42.51 euros, accusing its biggest drop in a session since July 11, 2008, there are more than six years, bringing its market capitalization to 33.9 billion euros.

Airbus Group has seen evaporate 3.94 billion euros of market capitalization, about the value of a dozen A380 at list prices.

“The move reflects the market adjustment to new perspectives, but it is clearly an exaggeration,” said a trader in Paris. “We still speak of Airbus and, in my opinion, the title should not take long to bounce back in the coming days, because at this level it is clearly a buying opportunity.”

The stock has lost 22.6% since the beginning of the year, but she had jumped from 89% in 2013.

CASH CONSUMPTION FOR A350

“We expect to achieve our profitability targets for 2015, but cash generation in the medium term will be difficult as we continue to strengthen our position and innovate on the commercial market,” said executive chairman Tom Enders.

Harald Wilhelm, however, that cash flow should not be too far from equilibrium in 2015, stressing that it was still difficult to provide a forecast at this stage due to the cyclical nature the activity of the group.

The cash flow should improve increasingly from 2016, he added.

The A350 is expected to consume much cash in 2015 and 2016, the two main years of the development phase of the long-haul program, said Harald Wilhelm, adding that the situation should improve in 2016 and 2017.

L ‘EBIT and cash flow of the group should also suffer from a further reduction in the rate of production of long-haul A330 in 2016, in addition to the project back from October to September aircraft per month in the fourth quarter 2015.

The group reaffirmed aim for a balanced available cash flow before acquisitions in 2014, against a negative balance of 2.090 billion euros to 30 September.

Airbus Group stressed that it should benefit from asset disposals, including the sale of shares in Dassault Aviation in 2015 or in 2016. The group began in late November to yield 8% of the aircraft manufacturer, in which it held 46.3%.

Tom Enders also said that the group would also be faced with a decision in the short, medium term on the future of the A380 on the basis of purely economic aspects, the priority remains to improve the trade dynamics very large aircraft.

Harald Wilhelm reiterated his side there was a potential for an increase in the production rate of the A320 to 50 a month at least after the planned increase to 46 units per month in 2016 against 42 now.

(Cyril Altmeyer and Alexander Boksembaum Granier, Blaise Robinson, Victoria Bryan in Berlin, edited by Dominique Rodriguez)

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