European plane maker Airbus revised down its headline target for jet deliveries on Wednesday and warned reaching the number would be a "greater stretch" after a series of industrial problems.
The cautious tone on deliveries, which drive revenues and profit, came despite higher than expected third-quarter core earnings at Europe's largest aerospace group.
The maker of jetliners, satellites and helicopters said it had made an adjusted operating profit of €1.57 billion (Dh6.54bn) in the quarter on revenues of €15.45bn.
Analysts on average expected third-quarter adjusted operating profit of €1.44bn on sales of €15.31bn, according to a Reuters poll.
Airbus has been struggling with fresh industrial problems as production of its fast-selling A321neo passenger jet hit a snag in Hamburg, Germany, even as bottlenecks eased at some engine makers.
"We have engines and we have the airframes but the whole industrial planning had to be reshuffled time and again ... next to some industrial challenges on our own operation," finance director Harald Wilhelm told analysts.
The new problems, which coincide with a queue of aircraft still waiting to be fitted with engines and delivered in the aftermath of the engine delays, were first reported by Reuters.
"A lot remains to be done before the end of the year to fulfil commitments," Airbus said.
Engine issues are holding back deliveries of revamped A330neo wide-bodies.
Earnings were lifted by the A350 wide-body programme, where costs are coming down as production accelerates, helping to make the plane the cash driver Airbus has needed.
Contract discussions on the troubled A400M military transport are progressing slower than planned, which suggests government customers are holding out for better terms, according to Bloomberg.
In pre-market trading, the shares were down 0.2 per cent on Tradegate.
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Airbus stuck to its headline target of around 800 commercial deliveries in 2018, but said this would now include 18 deliveries of the recently acquired Bombardier CSeries, renamed A220.
Boeing too has been suffering some industrial problems, but the world's largest plane maker last week reported stronger than expected third-quarter profit.
The commercial aerospace sector is in the eighth year of an extended upturn but there are some concerns about airline profitability that usually drives jet orders, speakers at the Airline Economics conference in Hong Kong said this week.
Even so, plane makers and their suppliers are pushing production to record levels based on eight years' worth of new plane orders, and their attention is focused on ironing out flaws in an already stretched global supply chain.
Airbus said deliveries were its first priority.
The biog
Age: 23
Occupation: Founder of the Studio, formerly an analyst at Cleveland Clinic Abu Dhabi
Education: Bachelor of science in industrial engineering
Favourite hobby: playing the piano
Favourite quote: "There is a key to every door and a dawn to every dark night"
Family: Married and with a daughter
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
Farasan Boat: 128km Away from Anchorage
Director: Mowaffaq Alobaid
Stars: Abdulaziz Almadhi, Mohammed Al Akkasi, Ali Al Suhaibani
Rating: 4/5
Types of policy
Term life insurance: this is the cheapest and most-popular form of life cover. You pay a regular monthly premium for a pre-agreed period, typically anything between five and 25 years, or possibly longer. If you die within that time, the policy will pay a cash lump sum, which is typically tax-free even outside the UAE. If you die after the policy ends, you do not get anything in return. There is no cash-in value at any time. Once you stop paying premiums, cover stops.
Whole-of-life insurance: as its name suggests, this type of life cover is designed to run for the rest of your life. You pay regular monthly premiums and in return, get a guaranteed cash lump sum whenever you die. As a result, premiums are typically much higher than one term life insurance, although they do not usually increase with age. In some cases, you have to keep up premiums for as long as you live, although there may be a cut-off period, say, at age 80 but it can go as high as 95. There are penalties if you don’t last the course and you may get a lot less than you paid in.
Critical illness cover: this pays a cash lump sum if you suffer from a serious illness such as cancer, heart disease or stroke. Some policies cover as many as 50 different illnesses, although cancer triggers by far the most claims. The payout is designed to cover major financial responsibilities such as a mortgage or children’s education fees if you fall ill and are unable to work. It is cost effective to combine it with life insurance, with the policy paying out once if you either die or suffer a serious illness.
Income protection: this pays a replacement income if you fall ill and are unable to continue working. On the best policies, this will continue either until you recover, or reach retirement age. Unlike critical illness cover, policies will typically pay out for stress and musculoskeletal problems such as back trouble.
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
Notable cricketers and political careers
- India: Kirti Azad, Navjot Sidhu and Gautam Gambhir (rumoured)
- Pakistan: Imran Khan and Shahid Afridi (rumoured)
- Sri Lanka: Arjuna Ranatunga, Sanath Jayasuriya, Tillakaratne Dilshan (rumoured)
- Bangladesh (Mashrafe Mortaza)
