This content is not available in your region

EADS looks to higher 2012 profit

EADS looks to higher 2012 profit
Text size Aa Aa

After posting forecast-beating second-quarter results, EADS is forecasting a significant rise in operating profit next year as demand for aircraft grows.

It believes its Airbus commercial plane division will sell more than 1,000 aircraft this year having outpaced US rival Boeing in the battle for plane orders in the first half.

EADS said it still expected 2011 operating profit before one-offs to remain stable year-on-year at around 1.3 billion euros depending on the euro’s strength against the dollar.

The group generates around 70 percent of sales at its Airbus division, with the rest fairly evenly split between its helicopter, space and defence businesses.

Quarterly earnings before interest and tax (EBIT) rose 15 percent to 371 million euros in the three months to June 30, while sales were up six percent to 12.1 billion.

Boeing, which splits its business more evenly between commercial aircraft and defence, on Wednesday posted forecast-beating quarterly profit on strong sales of its commercial aircraft, better management of its costs and a good mix of deliveries of its weapons systems. It also raised its 2011 earnings forecast.

EADS said Airbus should deliver 520 to 530 aircraft this year, including around 25 A380 superjumbos, helping revenue exceed last year’s level.

Boeing this week trimmed its delivery forecast slightly to 485-495 commercial aircraft from 485-500.

Planemakers receive down payments when orders are confirmed but airlines hand over the bulk of the price on delivery.