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By Gianluca Lo Nostro and Tim Hepher
(Reuters) -Airbus flagged short-term production pressures and confirmed a delay to its A350 freighter as it predicted a 7% increase in deliveries to around 820 jets this year, while continuing to clean up troubled space and defence projects.
Europe's largest aerospace group took a fresh charge of 300 million euros ($312.84 million) for its troubled Space business, while highlighting potential risks to the long-term future of its slow-selling A400M military transport aircraft.
Airbus reported adjusted operating income of 5.35 billion euros for 2024, down 8% and in line with expectations, including 2.56 billion in the fourth quarter as it grappled with ongoing snags in its supply chains.
Annual revenue rose 6% to 69.23 billion euros, of which 24.72 billion was generated in the three months to December 31.
Analysts had on average expected fourth-quarter core operating profit of 2.6 billion euros on sales of 24.68 billion, according to a company-compiled consensus survey.
Airbus' shares were down around 3% in early trading, after hitting record-highs a day earlier, with analysts pointing to the slightly weaker than expected EBIT burdened by space charges.
The planemaker, which delivered 766 jets last year, roughly in line with its target, has been facing industrial delays due partly to problems in the aerospace supply chain, which have also hampered the recovery of embattled U.S. rival Boeing.
"Specific supply chain challenges, notably with Spirit AeroSystems, are currently putting pressure on the ramp up of both the A350 and the A220," Airbus CEO Guillaume Faury told analysts during an earnings call.
The planemaker maintained all its medium-term output targets, however.
"Confidence in the future production rates for commercial programmes should be incrementally higher," RBC analysts said.
Airbus said it was delaying a new freighter version of its A350 wide-body jet by around a year to the second half of 2027, confirming a development delay previously reported by Reuters.
For 2025, Airbus forecast adjusted operating income to rise to about 7 billion euros, excluding any impact from threatened trade tariffs but including the integration of Spirit, in a sign that a final deal to absorb Airbus-related factories is close.
The France-based group is expected to take over two Spirit plants providing composite structural parts for the A350 and A220. It may also take over a smaller plant in Scotland if no alternative buyer can be found.
Airbus said the transaction would have a "broadly neutral" impact at the operating income level and weigh on free cashflow to the tune of "mid triple digit" millions of euros.