(AOF) – On the occasion of an investor day in Toulouse, the aircraft manufacturer Airbus reaffirmed an ambitious production strategy for its family of jets with the monthly production of around 50 A320neo. Financially, the manufacturer still needs to generate 1.5 billion euros in free cash flow to reach its target of 3.5 billion for the 2022 financial year. As of June 30, 2022, the total return for shareholders is amounted to 1.2 billion euros, compared to zero in 2021 and 2020 and 1.3 billion in 2019.
Guillaume Faury, CEO of the European aircraft manufacturer, underlined in his presentation to investors that the commercial aircraft order book was robust and well diversified: single-aisle aircraft still hold the upper hand with 6,699 aircraft on order as of August 31. 2022, of which 51% A321, while the jumbo jets on order number 640, of which 34% A330. Nearly 223 A320s are currently in operation worldwide.
Aircraft manufacturer Airbus is targeting ambitious production levels for the jet family. By the end of the year, the group is aiming for a monthly production rate of around 50 aircraft for its A320neo. The manufacturer also announced that it was considering an extended version of its A220. To cope with the turbulence in its supply chain, the company reaffirmed that it was pursuing an active management policy made up of personnel efforts and digitalization. An aircraft has nearly 2 million parts per aircraft supplied involving 13,000 suppliers, including approximately 3,000 first-tier, and nearly 3,000 buyers.
As of September 23, 2022, the aircraft manufacturer is targeting monthly production rates of 14 aircraft for the A220 in the coming years, compared to 6 at the end of 2022; 75 A320s compared to 50 at the end of 2022; 6 A350s compared to 5 at the end of 2022. The ambitions for the A330 are stable at more or less three units per month, as is the case for this year.
Chief Financial Officer Dominik Asam provided an update on the 2022 forecast. As of August 31, 2022, the aircraft manufacturer has delivered 382 of the planned 700 aircraft, leaving around 320 aircraft still to be delivered to customers. Adjusted Ebit is 2.6 billion euros in the first half of 2022 against a forecast of 5.5 billion for the overall financial year, i.e. a delta of 2.9 billion euros to be returned to the coffers of the company. ‘company.
Free cash flow – before M&A and customer financing – is 2 billion euros in the first half of 2022 against a target of 3.5 billion for the 2022 financial year, i.e. a difference of 1.5 billion to be generated yet.
Regarding the dividends per share and the payout ratio, Dominik Asam indicated in his presentation that after reaching 42% in 2018 (1.65 euros per share), the ratio fell to 28% at 1.50 euros in 2021 but that he was counting on an upward recovery in this ratio. As of June 30, 2022, the group has distributed 1.2 billion euros to shareholders, compared to zero in 2021 and 2020 and 1.3 billion in 2019.
Receive our latest news
Every morning, the information to remember on the financial markets.