By Scott Kanowsky
Investing.com -- Airbus Group SE (EPA:AIR) predicted that it would deliver more planes this year despite lingering supply chain constraints that weighed on performance throughout 2022.
In a trading update, the European jet-making giant said it now expects to achieve around 720 commercial aircraft deliveries in 2023, up from 661 in the prior year. Full-year adjusted earnings before interest and taxes are also seen at €6.0 billion (€1 = $1.0697), while free cash flow is anticipated to come in at approximately €3.0B.
But all of these figures were below Bloomberg consensus estimates.
Airbus flagged as well that the production ramp-up for its popular narrow-body A320 planes will be pushed back to account for supply disruptions, with the model estimated to hit a monthly output rate of 65 aircraft by the end of next year. The group previously said it initially planned to hit that target in "2023 and 2024."
This delay was tempered by growing demand for its wide-body jetliners as international travel recovers from COVID-era restrictions. Airbus said it is aiming to churn out nine of its A350 planes a month by the end of 2025, an increase from its current rate of around six. Monthly output of its A330 model is also expected to reach a rate of four in 2024 from three at the end of last year.
With these announcements in mind, analysts widely shrugged off the lower-than-expected guidance, calling the core earnings forecast in particular "reassuring" and noting that the A320 delays stem from short-term supply challenges instead of a lack of demand.
In 2022, these supply chain constraints led to lower-than-anticipated commercial aircraft deliveries, chief executive officer Guillaume Faury said in a statement.
However, results in the fourth quarter still beat projections. Adjusted core income grew by 43% to €2.15B, ahead of estimates of €1.95B, on revenue of €20.64B.
"The industry continued its recovery during 2022, with air traffic increasing and airlines turning to their long-term fleet planning," Faury said.
He added that, thanks to the "strong" 2022 returns and its confidence for the current year, Airbus has proposed an annual dividend of €1.80 per share, topping the 2021 payout of €1.50 a share.
Airbus shares jumped in early European trading on Thursday, touching their highest mark in almost three years.