Airbus Group defied warnings of a slowdown in the jetliner market with a steep production boost for its top-selling A320 and announced its biggest ever dividend.
The firm’s confidence about demand and a switch to the new A320 model lifted its shares and came despite a fresh charge of 551mn euros due to delays to the A400M military transporter.
Core operating earnings before one-off items rose 21% to a stronger-than-expected €1.476bn in the fourth quarter on revenues up 9%, amid strong jet deliveries.
Airbus raised its dividend to a record €1.20 per share after a 59% leap in annual net profit buoyed by disposals. For 2015 it forecast higher revenue and a slight increase in core profit.
The world’s second-largest aerospace group after Boeing said it would increase production of the A320 jet family to a record 50 a month in early 2017.
Both the scale and accelerated timing for the move, confirmed details reported by Reuters earlier this week.
The confidence shown by the production boost overrode concerns about a simultaneous “temporary” drop in production of the wide-body A330 jet, which is enduring slow sales ahead of its own revamp in 2017.
Both models are seen as cash cows for the company.
The A330 production rate was cut to six a month from the first quarter of 2016, having already been cut to nine a month from the fourth quarter of this year.
“Airbus has bitten the bullet on the A330,” said Edison Investment Research analyst Sash Tusa, adding that the move was widely expected.
The hike from 42 A320s a month to 50 by the first quarter of 2017, closely chasing Boeing’s plans for its 737, “could to an extent offset the A330 effect in that year,” he said in a note.
