PARIS - European planemaker Airbus stuck to full-year financial targets after reporting slightly higher-than-expected core first-quarter profit, overshadowed by weaker cash and charges related to a German ban on defense exports to Saudi Arabia.
Germany said last month it would extend a ban on exporting arms to Saudi Arabia, straining ties with fellow European arms exporters including France, where Airbus is based.“We are handcuffed and cannot complete the Saudi export contract as planned,” Asam told analysts, adding that Airbus would continue talks with Saudi Arabia.
After the Saudi charge and a smaller one for the A380, which is set to end production, core profit fell 9 percent. Output of the A320neo is determined for now by the capacity of a flat-out supply chain, and Airbus has no plans to alter its 2021 output goal of 63 aircraft a month, Faury said.