Airbus SE (EPA: AIR) reported £980 million of net loss for 2020 on Thursday, blaming the ongoing Coronavirus pandemic that wreaked havoc on demand for air travel. In the fourth quarter, however, the company turned a £1.34 billion profit.
Airbus shares opened about 3% down on Thursday and failed to recover the intraday gain later on. Compared to a low of £42.45 per share in March 2020 when the COVID-19 crisis brought air travel to a near halt, however, the stock has recovered sharply and is currently trading at a per-share price of £78.98. Learn more about the different types of stock investments.
Airbus reports £43.18 billion of full-year revenue
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Airbus said that its full-year adjusted EBIT (earnings before interest and taxes) printed at £1.48 billion that represents a 75% annualised decline. The aeroplane manufacturer generated £43.18 billion of revenue in 2020 – a 29% decline from the previous year.
Excluding merger and acquisitions (M&A) and customer financing, the Leiden-headquartered firm noted about £4.24 billion of free cash flow in Q4. Airbus concluded 2020 with £6.0 billion of total outflow. In October, Boeing’s competitor said that it delivered 57 passenger planes in September versus 39 in August.
For 2021, the world’s largest aeroplane maker now forecasts at least £1.73 billion of adjusted EBIT. It expects aircraft deliveries this year to remain unchanged or slightly improve as compared to 2020.
The guidance, Airbus added, doesn’t account for any further hit to air traffic or the world economy at large due to the COVID-19 crisis in 2021. The European multinational also expects its free cash flow to breakeven by the end of the current year. In the prior quarter (Q3), Airbus had registered £663.54 million of net loss.
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Airbus refrains from declaring a dividend for 2020
Airbus refrained from declaring a dividend for 2020 in a bid to cushion the economic blow from the ongoing health emergency that has so far infected more than 110 million people worldwide and caused over 2.4 million deaths.
CEO Guillaume Faury commented on the financial update on Thursday and said:
“Many uncertainties remain for our industry in 2021 as the pandemic continues to impact lives, economies, and societies.”
Airbus performed largely downbeat in the stock market last year with an annual decline of more than 30%. At the time of writing, the European multinational aeroplane manufacturer has a market cap of £61.73 billion.