AIRBUS Group yesterday posted lower than expected third-quarter profits led by a faltering performance in its core commercial jet division and continued weakness in the commercial helicopter market, but broadly maintained its 2016 outlook.

    Europe’s largest aerospace group, which makes Airbus jets and a leading share of commercial helicopters, said quarterly operating profit before one-off items fell 21 percent to 731 million euros (US$796 million). Revenues fell 1 percent to 13.95 billion.

    Analysts had on average forecast quarterly core operating earnings down 19.3 percent at 743 million euros on revenues up 1.9 percent.

    The Airbus commercial jets unit saw a 26 percent slump in third-quarter profits despite 4 percent higher revenues, with the planemaker noting difficulties in the supply chain for its A350 and A320neo jets. Helicopter profits fell 29 percent.

    Airbus said its results were dampened by the transition to new models and revamped versions of existing ones.

    It has struggled to switch over to a new model of A320 as quickly as planned due to delayed deliveries of engines from Pratt & Whitney, which this week reaffirmed plans to deliver 150 of its new Geared Turbofan engines this year.

    Airbus said it had received “firm commitments” from engine makers that they would meet the A320neo schedule.

    Deliveries of A350 long-haul jets have also been held up by bottlenecks in the supply of cabin equipment.

    Airbus said it was “working towards” meeting its previously stated target of over 50 A350 deliveries in 2016, having delivered 26 aircraft in the first nine months.

    The parent group reaffirmed annual targets including stable operating earnings and free cashflow before merger activity and more than 650 total jet deliveries, compared with 462 deliveries in the first nine months.

    However it abandoned a previous target of regaining access to European export credit financing this quarter, suggesting it may come under pressure to offer extra customer financing. It said its cashflow target excluded any impact from this. (SD-Agencies)