Airbus pledges profit gain after bribery settlement hit

TOULOUSE, France (Reuters) – Airbus (AIR.PA) pledged higher jet deliveries and operating profit this year, after an international bribery settlement and problems with the A400M transport plane plunged the aerospace group to a 1.36 billion euro ($1.48 billion) net loss for 2019.

A weaker sales outlook for the military transporter led to a 1.21 billion euro charge and will continue to weigh in coming years, Airbus said on Thursday. Its full-year loss also reflected a provision for last month’s $4 billion settlement with prosecutors over past corrupt practices.

Adjusted operating income, excluding the charges and other one-offs, rose 19% to 6.95 billion euros and should top 7.5 billion in 2020, Airbus said. Revenue increased 11% to 70.48 billion.

Airbus turned in a “strong underlying financial performance”, Chief Executive Guillaume Faury said, and will focus this year on operational and cost improvements as well as “reinforcing our company culture.” Airbus shares were down 1.3% at 1002 GMT.

Reposted from Reuters on Sikanti


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