By Robert Wall
MUNICH-- Airbus Group NV on Friday said it would boost
production of its popular A320 single-aisle jet as Europe's largest
plane maker reported a 59% rise in profit for last year despite
problems with a big military aircraft program.
Net income was EUR2.3 billion ($2.6 billion), the Toulouse,
France-based company said, compared with EUR1.5 billion a year
earlier when earnings were weighed down by costs linked to the new
A350 long-range jet that entered service in January. Sales in the
period rose 5% to EUR60.7 billion.
Airbus said it would hike output of the A320 plane to 50 jets a
month starting in 2017. The world's second-largest plane maker,
which currently builds 42 of the planes a month, had already
planned to reach a monthly production rate of 46 narrowbodies next
year.
The company also further cut output of its A330 widebody plane
to six planes a month from 2016. Airbus builds 10 of the planes now
and was reducing output to nine planes later this year as demand
for the current model dries up while the plane maker works on an
updated version.
Airbus expects commercial plane deliveries this year to rise,
including production of 15 of the new A350 long-range jets and 30
A380 superjumbos. Earnings per share and dividend also are due to
increase, it said. Free cash flow should reach break-even, it
said.
Earnings were negatively impacted by EUR551 million on renewed
problems in building the A400M military transport plane that
previously weighed on results when it fell years behind schedule
and ran massively over cost. The issues caused Airbus to replace
the head of its military aircraft programs last month.
Airbus builds the A400M for eight customers, though deliveries
have been marred by delays and technical defects. The company this
year is hoping to ramp up sales campaigns to secure additional
orders for a program that remains unprofitable.
Earnings this year also benefited from one-off issues, including
EUR383 million in gains associated with the sale of 8% if the
company's holdings in French combat jet plane maker Dassault
Aviation SA and Finish defense company Patria.
The company proposed to a record dividend of EUR1.20 a
share.
Write to Robert Wall at robert.wall@wsj.com
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