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Airbus says group set for long-term growth

Published 11/12/2014, 11:56
Updated 11/12/2014, 12:00
© Reuters. Airbus's logo is pictured at Airbus headquarters in Toulouse
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BERLIN (Reuters) - Airbus (PA:AIR) sought to play down a warning on 2016 profit on Thursday, saying the group would grow earnings beyond that and that divestments would allow it to pay dividends even if investments in new planes hurt cashflow.

Airbus shares plunged 10 percent on Wednesday after the group forecast flat earnings in 2016.

"For 2016, it's not a guidance. We're at end of 2014, there's a lot of parameters, we are giving you a trend," chief financial officer Harald Wilhelm told investors at an event in London on Thursday.

"The point is that there is a very clear evolution of programmes and businesses and that shows growing EBIT and cash generation over the horizon to come," he said.

He added that divestments as part of a portfolio shake-up would help net income and therefore the dividend.

© Reuters. Airbus's logo is pictured at Airbus headquarters in Toulouse

(Reporting by Victoria Bryan; Editing by Kirsti Knolle)

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