KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
Airbus SE’s operating profit dropped by over half in the second quarter due to significant charges at its space division, coupled with reduced aircraft deliveries.
Key Takeaways:
Earnings Drop: Adjusted earnings before interest and taxes fell 56% to €814 million (RM4.09 billion) for the three months ending in June. The company incurred a €989 million charge at its space unit in the first half of the year, higher than previously forecasted.
Production Challenges: Airbus faces production constraints, unable to build aircraft fast enough to meet the high demand for fuel-efficient jets. This situation has led the company to decline some prospective customers as its popular models are sold out into the next decade. Rival Boeing Co also faces similar production slowdowns.
Parts Shortage: A shortage of components, including engines and cabin interiors, forced Airbus to cut its annual delivery target to 770 units and delay the monthly production rate increase of A320neo jets by a year. This reduction in deliveries impacts cash flow, prompting a revised operating profit and free cash flow outlook for the year.
Market Conditions: Despite strong travel demand, Airbus’s commercial aviation head, Christian Scherer, mentioned at the Farnborough Airshow that a potential slowdown in demand could ease production pressures. However, no customers have requested delivery deferrals yet. The A321neo model is sold out until 2031, and the A350 is unavailable until 2030.
Financial Outlook: Airbus maintains its expectation of adjusted earnings before interest and tax of €5.5 billion for the year, down from an initial goal of up to €7 billion. Free cash flow before customer financing is projected at about €3.5 billion.
Cost-Cutting Measures: In response to the challenging environment, Airbus has launched a savings plan called Project Lead, which includes reducing internal travel and events and seeking cost-cutting measures within individual departments.
Space Systems Review: Airbus has initiated a comprehensive review of its space systems unit, reassessing project timelines and risks. The company is exploring all strategic options, including restructuring, portfolio review, cooperation, and mergers and acquisitions for the unit.
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